The growth of the crop will contribute to the restoration of weather conditions after the drought they experienced in the 2015/16 season, as well as the use of new high-yielding varieties of palm trees planted in 2010. which will give a higher yield. The rate of expansion of the areas under the palm trees will be lower than previous seasons.

Palm oil exports for the current season will increase to 17 million tons versus 16.6 million tonnes in the 2015/16 season. Exports will be below initial projections due to more competitive export prices of Indonesia that aggressively increasing deliveries to China and India by reducing the proportion of Malaysia.

According to estimates by traders and analysts, until the end of 2017. the duty on exports of crude palm oil from Malaysia will remain in the range 6,5%-7,5% of one ton. While maintaining this rate producers prefer to sell their products to domestic processors than to pay the export duty.

Photo: foodexpert.pro