JAKARTA (Commodity Online): The rising usage of palm oil in India and China, the largest consumers, may raise the global demand of the commodity by 2-3% in 2012, according to Indonesia Palm Oil Board.
In 2011, the global demand is estimated to be around 40 million tons.
According to Derom Bangun, a vice-chairman of the Jakarta-based producers and refiners group, the rise in demand for the plalm oil is due to the increase in use of canola and other vegetable oils for the industrial uses, lowering the availability in the food sector, reported Business Standard
The rise in global demand will tend to increase the production in Indonesia and Malayasia. as both the nation together contribute 80% of the total global production.
The Southeast Asian country is estimated to produce 24 million tons and exports around 18 million tons in 2011.
On MCX, the Crude Palm Oil (CPO) traded down 0.22% to Rs 505.60 on 2nd December at 10:40 IST.
