Palm Oil Production Likely To Drop 5-8 Pct This Year On El Nino - MPOC

KUALA LUMPUR Oct 12 (Bernama) -- Malaysian palm oil production is expected to drop by between five per cent and eight per cent this year due to the prolonged El Nino drought, said Malaysian Palm Oil Council (MPOC) Chairman Lee Yeow Chor. Palm oil production in Malaysia, the second largest palm oil producer, has eased by 1.0 million tonnes to 1.5 million tonnes in the first half of this year due to the lingering effects of the El-Nino weather pattern. In 2015, Malaysian palm oil production stood at 19.96 million tonnes. Lee also said production in Indonesia had reduced substantially in the first half of the year, and output for the full year would be below last year's level. On the home front, he said palm oil demand was still very steady in the last three months bolstered by India and China. "Demand from China has increased quite well in the past quarters, partly due to Mooncake festival and it is only natural that after a big increase it would come down slightly. "But we are not just looking at China, which used to be the biggest palm oil importing country. It has been taken over by India since two years ago," said Lee. Therefore, India is now the biggest palm oil importing country and the import volume for this year was still high, he added. Lee also said the council would still continue to look into emerging markets like Africa for export growth. Additionally, MPOC also plans to set up a regional office in Ghana, Africa next year to spur the demand for palm oil in that region. -- BERNAMA