Industry warns severe El Niño could shrink CPO output
GAPKI chairman Eddy Martono said that the significant impact of a severe El Niño on palm oil production could be felt as early as next year.
Industry groups have cautioned that a severe El Niño could significantly diminish crude palm oil (CPO) production, potentially cutting output by up to 5 million tonnes in the upcoming year. Eddy Martono, chairman of the Indonesian Palm Oil Producers Association (GAPKI), warned that the impact of such an extreme weather event could be felt as early as the following year.
GAPKI anticipates that the mandatory increase in palm-based biodiesel to a 50 percent blend from the current 40 percent could boost domestic CPO consumption for biodiesel production, potentially reaching 16.3 million to 17 million tonnes annually. Despite this, Martono stressed that the priority remains to ensure an adequate supply of palm oil for domestic use, indicating that export volumes would likely decline.
The association has previously projected that the B50 implementation could raise domestic CPO consumption for biodiesel to between 16.3 million and 17 million tonnes per year. Producers are optimistic that national CPO output of approximately 53 million tonnes in 2026 will still be sufficient to meet the increased domestic demand for fuel.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
