Lang
Indonesia's palm oil production is forecast to rise to 47 million tonnes in the 2025/2026 season, according to estimates from the agricultural attaché at the US Department of Agriculture (USDA) in Jakarta. This represents an increase of 1.5 million tonnes compared with the 2024/2025 output estimate of 45.5 million tonnes.
The USDA's Jakarta office estimated that yields will improve to 3.26 tonnes per hectare, up from 3.16 tonnes per hectare in 2024/2025, as a result of "improved weather conditions and adequate fertiliser availability," the report said. Meanwhile, the harvested area is expected to remain stable at 14.4 million hectares.
Palm oil exports for the marketing year are forecast to rise by a million tonnes to 24 million tonnes, with China, India and Pakistan remaining the top importing markets. China and India are the world's largest palm oil importers, while Pakistan ranks fourth, according to official USDA data.
The Jakarta office noted that Indonesia's total domestic consumption will rise slightly by 250,000 tonnes to 22.61 million tonnes. However, the increase in the biodiesel blending mandate to B40 (meaning 40% of the biodiesel is palm oil-based) this year will constrain export volumes due to higher domestic biofuel consumption.
The agricultural attaché also forecast that ending stocks will rise to 5.29 million tonnes, compared with 4.90 million tonnes in the 2024/2025 season.
Indonesia is the world's largest palm oil producer, producing an estimated 46 million tonnes in 2024/2025, according to official USDA figures, accounting for around 59% of global output.
Indonesia is also the world's largest palm oil exporter, with exports of 22.60 million tonnes in 2024/2025, or about 51% of the global market. It also ranks first in domestic consumption, at around 23.33 million tonnes, equivalent to 30% of global consumption.
Source: Al Mal Forum