Indonesia's 2015 palm output growth to slow after drought -industry

plantation_indonesia

plantation_indonesia

-A +A

JAKARTA (Nov 11): Indonesian output of palm oil will grow by just over 3 percent in 2015, less than half the 7 percent growth rate this year, a leading industry association said on Tuesday, after prolonged drought in the main growing region of Sumatra.

Output in the world's top producer of the tropical oil will be 31.5 million tonnes next year, up from 30.5 million tonnes in 2014 and 28.5 million tonnes in 2013, said Fadhil Hasan, executive director at the Indonesian Palm Oil Association.

"The weather this year will be a factor," said Hasan, adding there was a prolonged dry spell on the island of Sumatra, which ended with the arrival of seasonal rains two weeks ago.

Despite reports of a continuing dry spell in the Kalimantan region, Hasan said he had returned from there last month and that it had already begun raining then.