India, China to drive global palm oil demand higher

Global palm oil consumption is forecast to reach a record 37.3 million metric tonne (MMT) in 2006/07.

The larger food consumption forecast is driven primarily by increased palm oil demand in China and India. Growth in industrial use comes as Malaysia, China and the EU-25 expand their palm oil biofuels programs.

The demand emanating from biofuel generation needs may skew supply situation in favour of EU as the prices will be driven higher.