Indonesia plans to implement B40 in January

In that case, costs might rally 10%-15% in Jan-March, Mielke says

B40 will need additional 3 mln lots feedstock, GAPKI says

Malaysia palm oil standard at greatest considering that mid-2022

India may withdraw import tax trek in the middle of inflation, Mistry states

(Adds expert remarks, updates Malaysia's palm oil criteria rate)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recover in 2025 after an expected drop this year, however prices are anticipated to remain raised due to organized growth of the nation's biodiesel required, market experts stated.

The palm oil criteria rate in Malaysia has actually increased more than 35% this year, raised by slow output and Indonesia's plan to increase the necessary domestic biodiesel mix to 40% in January from 35% now in an effort to minimize fuel imports.

Palm oil output next year in top manufacturer Indonesia is anticipated to recover by 1.5 million metric heaps compared with an estimated drop of just over a million tons this year, Julian McGill, handling director at Glenauk Economics, told the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research company Oil World, stated he expects Indonesia's palm oil production to increase by as much as 2 million tons next year after a 2.5 million load drop in 2024.

While Indonesia's output is anticipated to improve, supply from somewhere else and of other veggie oils is seen tightening.

Palm oil output in neighbouring Malaysia is anticipated to dip somewhat next year after increasing by an estimated 1 million heaps in 2024.

"We would require a healing in palm in 2025 due to the fact that combined exports of soya, sunflower and rapeseed oils are decreasing," Mielke stated.

'FRIGHTENING' PRICE SURGE

The cost rise in palm oil in the past 7 weeks has actually been "frightening" for purchasers, Mielke said, adding that it would rally by 10%-15% in January-March if Indonesia imposes the so-called B40 policy.

The Indonesia Palm Oil Association said additional feedstock of around 3 million loads will be needed for B40 application, deteriorating export supply.

The current palm oil premium has already caused palm to lose market share against other oils, Mielke included.

Malaysian palm oil costs are seen trading at around $950 to $1,050 per metric load in 2025, McGill of Glenauk estimated.

Benchmark Malaysian palm oil touched 5,104 ringgit ($1,165.30) on Friday, the highest since mid-2022.

"Sentiment right now is red-hot and extremely bullish, we have to be careful," stated Dorab Mistry, director at Indian consumer items business Godrej International.

He anticipated the Malaysian rate around 5,000 ringgit and above until June 2025.

Mielke and Mistry urged Indonesia to

think about postponing

B40 implementation on issue about its effect on food consumers.

Meanwhile, Mistry expected top palm oil importer India to withdraw its

import duty walking

enforced from September after elections in the state of Maharashtra in November. ($1 = 4.3800 ringgit) (Reporting by Bernadette Christina Munthe Writing by Nangoy