BANGKOK – The Ministry of Agriculture and Cooperatives has predicted a decline in palm oil output, as a result of the prolonged drought.
The Office of Agricultural Economics disclosed that the amount of oil palm produced this year was below that of last year in every quarter. However, oil palm yield is expected to increase in the last quarter thanks to the rainy season.
Compared to last year, the overall volume of oil palm this year is likely to drop by two percent to 12.2 million tons, which can translate into two million tons of raw palm oil. Coupled with the existing 220,000 tons of reserves, the 2.2-million-ton output of palm oil can still meet the current demand of 1.8 million tons.
The Ministry of Agriculture and Cooperatives has drafted oil palm and palm oil strategies for 2015 and 2016 to serve as the guideline for related agencies. The draft has been submitted to the cabinet.