Oil prices likely to ease out as palm oil production in Malaysia set to go up
The edible oil traders in the country have expressed anticipation about edible oil prices easing out in the near future in India, as palm oil production in Malaysia is expected to rise due to availability of increased manpower required to produce that oil. Mr. Shankar Thakkar, President, Edible Oil Traders Confederation, said that the rise in palm oil production will help India in arresting the edible oil prices wherein it is expected that the prices of palm oil may loosen up to USD902 per tonne.
The expectations were expressed by the Government of Malaysia in the budgetary discussion. Malaysia is the second-largest palm oil producer in the world after Indonesia. He said that in the last two years the availability of labour was impacted due to Covid pandemic.
This has impacted directly the palm oil production and it resulted into loss of around 20 billion Ringgit (Malaysian currency). And due to efforts of the local government, the availability of manpower was high and by June this year the production is likely to stabilise.
Meanwhile, the prices of sunflower and soybean oil are expected to ease out due to availability of supplies resulting in reduction in oil prices. Further, Mr. Thakkar has said that the oilseeds production in India is expected to be high this season which will ease out pressure on edible oil import.