KONTAN.CO.ID - JAKARTA. Leading palm oil players in Indonesia see production growth being hit in the short to medium term, as the world’s top grower of the edible oil faces drought across major planting regions that is expected to delay fruit ripening and lower output. Drought has hit large parts of the archipelago as a mild El Nino disrupts the dry season, weather officials say, with its peak now expected to run from mid-August to mid-September. The number of hotspots have also been increasing. Four of the seven local planters that Reuters spoke to said they expect third-quarter production to chart flat-to-slower growth compared to the previous quarter, as they are already seeing a delay in fruit ripening. But the other three said this effect would only be seen within the first half of next year.
Indonesian planters see drought hitting palm oil output
KONTAN.CO.ID - JAKARTA. Leading palm oil players in Indonesia see production growth being hit in the short to medium term, as the world’s top grower of the edible oil faces drought across major planting regions that is expected to delay fruit ripening and lower output. Drought has hit large parts of the archipelago as a mild El Nino disrupts the dry season, weather officials say, with its peak now expected to run from mid-August to mid-September. The number of hotspots have also been increasing. Four of the seven local planters that Reuters spoke to said they expect third-quarter production to chart flat-to-slower growth compared to the previous quarter, as they are already seeing a delay in fruit ripening. But the other three said this effect would only be seen within the first half of next year.