Increase in palm oil production may lead to price reduction

Thailand’s food makers could enjoy lower palm oil prices this year, with domestic production expected to increase by around a third.

The country’s production had been significantly depressed during 2004-2005 owing to drought but with an extra 100,000 -200,000 hectares to be planted with oil palms this year and next year, and better weather boosting extraction rates, output is forecast to substantially increase.

A report by the US agricultural attach