Pakistan and India are set to help Malaysia increase its palm oil exports with festival season - holy month of Ramazan and Hindu festival Holi - beginning in both countries in September. To add to that, Malaysia is all set to have a bumper palm oil production.
Malaysia expects palm oil exports in 2008 to grow at least 7.3 percent on back of higher output and rising overseas demand. Plantation Industries and Commodities Minister Peter Chin said exports were expected to rise to 14.7 million tonnes this year from 13.7 million tonnes a year ago.
Traders said exports might surpass government's projection as demand from the Middle East, Pakistan and India might rise during upcoming holy month of Ramazan and Hindu festival Diwali. Shipments during January-July period rose 16.2 percent on year to 8.33 million tonnes.
Chin said palm oil production this year was projected to be 17 million tonnes compared with 15.8 million tonnes last year. Government had first projected an output of 16.2 million tonnes for this year, which was revised to 16.5 million tonnes, followed by latest forecast.
Malaysian palm oil production has been rising steadily since March on increase in matured oil palm areas, higher yield of fresh fruit bunches and improvement in oil extraction rate. Growth momentum is expected to be maintained in peak production months of August and September. Growers and palm oil industry analysts expect production to exceed 17.5 million tonnes.
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