InfoSAWIT, KUALA LUMPUR - Thomas Mielke of Oil Word estimates that the production of the world's four main vegetable oils will grow by 7 million tons in 2021/2022, this is the highest growth rate in the last four years, this condition is expected to push vegetable oil prices lower .

Mielke estimates that global palm oil production will increase to four million tons in 2021/22 driven from Indonesia 1.7 - 2 million tons, Malaysia 1-2 million tons, and from other countries around 800,000 tons.

He added that the lack of new plantings would slow the growth of mature areas to just 400,000 ha to 500,000 ha by 2022, compared to an annual growth of 0.9 ha to one million ha in 2018.

He estimates that Malaysia in 2021 will only be able to produce 18.2 million tonnes of palm oil and expects the use of vegetable oil for energy purposes to increase to 48 million tonnes from 1.5 million tonnes in 2021, which is 18% of the world's 17 oil and fat consumption.

"Overall, the current high vegetable oil prices are unsustainable and prices will fall in January or June next year, triggered by increased production and soaring stockpiles," Mielke said as quoted by InfoSAWIT from themalaysianreserve.

Meanwhile, VP of Indian Vegetable Oil Producers Association Vipin Gupta revealed that palm olein imports have a negative impact on capacity utilization and refinery margins of India's refineries. "India is likely to reduce imports of palm olein after December 2021 as the temporary removal of restrictions on imports of refined palm oil will expire at the end of this year," he said.