Malaysian Palm Oil Council
El Niño to crimp Indonesian palm oil output, producer group says
Published:
English editorial record · proofuel
Key points
- The Indonesian Palm Oil Association (Gapki) estimates that severe El Niño conditions could reduce Indonesia's palm oil production by up to three million tonnes in 2026, equivalent to roughly 5% of the previous year's output.
- This supply reduction is expected to tighten the global palm oil market and exert upward pressure on prices, particularly as Indonesia prioritizes domestic biodiesel mandates.
Summary
The Indonesian Palm Oil Association (Gapki) estimates that severe El Niño conditions could reduce Indonesia's palm oil production by up to three million tonnes in 2026, equivalent to roughly 5% of the previous year's output. This supply reduction is expected to tighten the global palm oil market and exert upward pressure on prices, particularly as Indonesia prioritizes domestic biodiesel mandates.
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