(Hellenic Shipping News) India’s newly launched biodiesel mandate would have limited impact on the region’s balances but could potentially help ease Malaysia’s crude palm oil surplus, market participants said Tuesday.
…
Reactions in the region were mixed, with some market participants expressing surprise as India has limited production of palm oil and would need to import the raw material for producing biodiesel, defeating the original purpose of non-reliance on imports.
“India doesn’t have anything — they are a net importer of oils and have a food deficit so they will have to import the raw material when its economical versus the domestic feedstock,” said a trader.
In addition, palm oil is currently more attractive into the edible oils sector as opposed to biofuels prompting biodiesel manufacturers in India to look mainly at used cooking oil as a feedstock.
…
“India can mop up the surplus in the region, but we don’t know the actual consumption figures from there too, and there have been no enquiries for imports as yet,” said a Malaysian producer. READ MORE