Thailand has potential to expand palm plantations as Indonesia ups use - SEA
This story was originally published at 19:40 IST on 27 January 2025
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MUMBAI – Thailand has the potential to increase its palm plantations as neighbour Indonesia may utilise most of its production for biodiesel for domestic use, Atul Chaturvedi, chairman of Asian Palm Oil Alliance and special advisor to the Solvent Extractors' Association of India said during Globoil Asia 2025, organised by TEFLA in Bangkok, Thailand, from Jan. 23-24.
"Thailand has the potential of expanding its palm plantations and fill the gap which Indonesian actions are creating. Close proximity to huge consuming countries like India and China would ensure a ready market," the release said.
During 2024, palm oil became the costliest oil and imports dropped massively in India. The release mentioned that rising edible oil prices may slow consumption growth. Import costs are climbing, altering fast-moving consumer goods trends. Palm will continue losing market share if prices remain elevated compared to soyoil and sunflower oil, the release said.
While mentioning the Indian scenario of the edible oil market, the release said that India saw two distinct phases in 2024. The pre-election period kept edible oil import duties near zero, benefiting consumers but hurting the industry. Post-election, import duties rose by 22%, stabilising domestic prices and benefiting oilseed farmers. Maize-based ethanol production surged, supported by government incentives, reducing reliance on sugar-based ethanol. High maize ethanol has resulted in very high production of dried distillers grains, which has ensured soymeal prices in the country remain subdued, the release said. This shift could now lead to increased maize cultivation at the expense of pulses and soybeans. End
Reported by Anjali Lavania
Edited by Deepshikha Bhardwaj
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