(Oct 31): The Council of Palm Oil Producing Countries (CPOC) sees the demand for palm oil-based biodiesel increasing by five million tonnes next year, hence pushing up palm oil prices, said its executive director Tan Sri Dr Yusof Basiron.

He said the production of biodiesel was also seen as an important opportunity to further develop the palm oil industry, add value and increase employment while providing price stabilising tool through rationalisation of stock/supply.

“The implementation of B30 programme in Indonesia and B20 in Malaysia next year will consume 11 million tonnes of palm oil,” he said in his presentation slides at the 15th Indonesian Palm Oil Conference and 2020 Price Outlook.

Yusof noted that the supply of palm oil would increase by 2.5 million tonnes in 2020, but the increase in the demand for palm oil biodiesel by five million tonnes would help create a balanced market.

“By 2025, deforestation is no longer an issue against palm oil, while supply will not be keeping pace with demand and prices will be more remunerative for the producers,” he added.