(NIK) PALM OIL PRICES SLUMP

Palm oil, a key export commodity of Malaysia and Indonesia, has come under attack from the European Union over allegations of deforestation and unsustainable farming practices. Malaysia and Indonesia have decided to send their ministers to lobby the EU against measures to restrict imports of palm oil.

Malaysia has proposed to limit palm oil acreage to 6.5 million hectares by 2023, and expanded the so-called biodiesel programs to help raise consumption in the immediate term, in a bid to lift prices of the edible oil that is used in everything from snacks to cosmetics.

Malaysia rolled out B10 biodiesel, a blend of 10% palm oil and 90% petroleum diesel, for the transport sector on Feb 1. It already trails Indonesia, which introduced B20 -- a blend of 20% palm oil and 80% fossil fuel -- to its transport sector in 2016.

https://asia.nikkei.com/Business/Markets/Nikkei-Markets/Palm-oil-prices-likely-to-rise-in-2019-as-output-slows