China supply deal to boost demand for palm oil

Higher consumption: Palm oil fruit bunches are delivered to a mill in Bahau. Industry observers say the potential for higher palm oil consumption in China is bright with some 6.5 million tonnes imports envisaged by 2025. — Reuter

PETALING JAYA: Malaysia’s current high palm oil stockpile is expected to ease to a manageable level, given the latest commitment by China to import an additional 400,000 tonnes of local palm oil per year in the next five years, say local planters.

The palm oil supply deal was part of the re-negotiation between Malaysia-China at at the conclusion of the revised East Coast Rail Link project.