Breaking News-RTRS-UPDATE 2-Malaysia struggling to sell palm oil on recession

KUALA LUMPUR, Nov 7 (Reuters) - Malaysia faces an uphill task in exporting its surplus palm oil thanks to a deepening global recession and environmentalist pressure over biofuels, a minister said on Friday.
Commodities Minister Peter Chin said with palm oil output expected to top 18 million tonnes in 2009, the government will work with largest producer Indonesia to cut supplies through replanting schemes and aim to revive domestic demand through biodiesel mandates.
Both Southeast Asian nations will also embark on a campaign against European Union's proposal for tough eco-standards for biofuels, which also include Germany's proposal for the exclusion of palm oil for biodiesel use.