The Hindu Business Line : Palm oil may top 4,000 ringgits soon

Kuala Lumpur, Feb. 26 Crude palm oil prices that have been hovering around 3,500-3,700 Malaysian ringgit (MYR) a tonne could touch 4,000 MYR a tonne quicker than many think, a representative of Frost and Sullivan told the delegates at the “Palm and Lauric Oils Price Outlook” conference here on Tuesday. Over 1,700 delegates from over 40 countries are participating.

Biofuels prop up the prices of agricultural goods through increased demand, setting a floor for other crops, he pointed out, adding that the market will continue to look for ways to grow, especially bioethanol crops. Energy security and politics will be a key reason behind this, the expert asserted.

Importantly, over the next five, 10 or 20 years, whether oil will keep up with the demand growth in the context of factors like growing population, energy needs, crops competing for land and water stress should cause considerable concern, he reasoned.

Suggesting that palm bio-diesel was a cost-effective environment-friendly fuel, Mr U.R. Unnithan of Carotino Sdn Bhd pointed out that in a free market world, palm bio-diesel was still the most cost effective diesel substitute as shown by Malaysian data. In terms of energy efficiency, greenhouse gas emissions and sustainability, the product stood out as an excellent eco-friendly fuel, he said.

Given palm’s best yield improvement potential, it can alleviate the food versus fuel problem, according to Mr Unnithan.

More Stories on : Oilseeds & Edible Oil

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mango crop hopes turn sour on adverse weather

Jet stream flux seen during early March

Malaysia looking at cultivation of jatropha

Spot rubber rules steady

‘India holds key to global sugar prices’

Grain merchants seek tax waiver

Palm oil may top 4,000 ringgits soon

Vietnam factor drives up pepper

Allow FIIs to participate in commodity derivatives

Banks, MFs must be allowed in futures markets