On this page
Indonesia warns of 4–5 million-tonne palm oil output drop next year, putting 2027 input costs at risk for Indian FMCG and snack makers
Our read
Start planning 2027 palm oil cover now, because a projected 4–5 million-tonne Indonesian output drop plus up to 2 million tonnes of extra B50 biodiesel demand could squeeze costs for snack and biscuit makers, though Dorab Mistry's "bullish, but not super bullish" view argues for staged buying over panic buying.
Watch
Full B50 rollout confirmed before 2027, adding 2 million tonnes of domestic use, would mean tighter export supply and dearer palm oil for Patanjali Foods and snack makers.
The report,
Indonesia's palm oil association GAPKI warned of a 4–5 million-tonne production decline next year, threatening 2027 input costs for Indian FMCG and snack makers such as ITC, Britannia and Patanjali Foods. Godrej International's Dorab Mistry expects prices to be bullish, but not super bullish.
One email each morning: the day’s top moves in Indian retail, why each matters and what to watch. Free. Stop any time.
Reported figures
From the report. Source details below
| Extra Indonesian domestic use if B50 fully implemented: | 2 million tonne |
|---|---|
| Initial annual EU preferential quota: | 1.9 million tonne |
| Annual EU quota increase for nine years: | 3 per cent |
| CPOPC members' palm oil production in 2021: | 66 million tonne |
What to watch next
- GAPKI revising its 4–5 million-tonne output decline estimate in later production data
- Palm oil price moves against other edible oils in the next two quarters
- Raw-material cost and margin commentary from Patanjali Foods, ITC and Britannia in upcoming results
- Any change to Indian edible oil import duty
The source
Published
First seen