At the Globoil Asia 2025 event in Bangkok, Atul Chaturvedi, Chairman of the Asian Palm Oil Alliance (APOA) and Special Advisor to the Solvent Extractors’ Association of India (SEA), emphasized that if palm oil prices continue to remain high compared to soft oils like soyabean and sunflower, it will continue to lose market share. Chaturvedi noted that Indonesia’s new President is focused on keeping palm oil within the country for use as biodiesel, leading to a decrease in exports which is impacting countries like India. This shift is causing palm oil to become the most expensive oil in the market and resulting in a decline in imports into India.
Chaturvedi also highlighted a significant opportunity for Thailand in the current scenario. With Indonesia focusing internally on palm oil, Thailand is poised to take advantage of its proximity to major consumer markets like India and China. This presents a favorable market for Thai producers to increase their presence in the region.
Furthermore, Chaturvedi discussed the potential impacts of currency and commodity volatility on emerging economies and commodities, mentioning the potential strength of the dollar and its implications for industries like sugar and edible oils. He also discussed the measures taken by the Indian government in response to food inflation fears in 2024, which initially led to challenges for the edible oil and sugar industries but eventually resulted in increased domestic prices and support for the oilseed farmers in the country.
Additionally, Chaturvedi noted the boost for grain distilleries in India following the government’s incentives for grain-based ethanol production. This shift towards maize-based ethanol production has led to an increase in maize cultivation at the expense of soya and pulses, ultimately impacting the prices of commodities like soya meal in the country.
Overall, Chaturvedi’s insights shed light on the changing dynamics in the global palm oil market and the opportunities and challenges that lie ahead for key players in the industry.
