Malaysia – Indonesia Set Palm for Fuel, Market Soars

The world’s top palm-oil producers, Malaysia and Indonesia, have decided to set aside nearly 40 percent of their crude palm oil output for biodiesel production, Malaysia’s commodities ministry said on Thursday.

Industry analysts said the move could further boost edible-oil prices, making it expensive for both food and energy users to buy vegetable oils.

“Palm oil is going to become expensive and out of reach for consumers in developing nations like India, China and Pakistan,” said M. R. Chandran, an independent commodity consultant. “Palm oil will lose its attractiveness as a cheaper form of edible oil.”

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