Palm oil prices set to rise as Indonesia tightens land seizure rules and expands biodiesel mandate

the palm oil sector, introducing controls over roughly five million hectares of plantations and seizing around 3.7 million hectares for regulatory violations. Analysts say such measures may negatively affect productivity, though opinions about the scale of the impact differ. At a palm oil industry conference in Bali, Thomas Mielke, executive director of Germany-based Oil World, predicted that Malaysia’s benchmark palm oil contract could climb to 5,000 ringgit (USD 1,183.71) per tonne within the next six months. On the same panel, Dorab Mistry of India’s Godrej International suggested futures could even reach 5,500 ringgit per tonne between January and March if land seizures continue and Indonesia implements its B50 biodiesel mandate. On Friday, the benchmark contract closed at RM 4,125. Analysts also caution that land seizures may limit investment in fertilizers and soil management. Mistry expects productivity to begin declining within two to three months, although he still ...