CPO price expected to reach above 4000 ringgit per tonne by the end of the current year

20-Sep-2024 06:43 PM

Mumbai. A leading analyst says that the global market price of crude palm oil (CPO) may cross the 4000 ringgit (79,000 rupees) per tonne mark by the end of the current year,

while in the middle period it will remain between 3700-3800 ringgit (73000-77000 rupees) per tonne. The environment of ups and downs in the price of CPO is expected to remain intact.

When the prices rise in the exporting countries, India naturally imports CPO, which is the largest importer of palm oil.

Import duty on other edible oils has also been increased by 20 percentage points. This also includes soya oil and sunflower oil.

After the duty hike, now the actual import duty on crude category edible oils has become effective at 27.5 percent and on refined edible oils at 35.75 percent.

According to analysts, a major reason for the increase in the price of crude palm oil is the fall in production due to unfavorable weather in Indonesia.

It is known that Indonesia is the largest producer and exporter of palm oil in the world. The B40 program is likely to be implemented there from next year (2025), under which it will be necessary to use 40 percent palm oil in the production of biodiesel.

For this, sufficient capacity, technical expertise, financial system and consumer market is available in Indonesia.

According to analysts, if the rule of using 40 percent palm oil in biodiesel production is implemented, then the total annual consumption of crude palm oil in this item can increase to 150 lakh tonnes.

At present, the rule of using 35 percent palm oil in biodiesel is prevalent there. On the other hand, palm oil production in Malaysia's most important producing province- Sabah is expected to rise to the highest level in the last four years during the last quarter of the current year (October-December), while its total annual production in Malaysia is expected to rise by 10 lakh tonnes from 185 lakh tonnes to 195 lakh tonnes.