This year palm oil output from Southeast Asia's largest economy will be between 23 million and 24 million tonnes, compared to 22.5 million tonnes in 2011, Rosediana Suharto, executive chairman of the Indonesian Palm Oil Commission (IPOC), told Reuters in an interview.
"Maybe more than 23 million," said Suharto, who also expects palm plantation areas to rise by 300,000 hectares in 2012, from 8.2 million hectares last year. "Our immature (area) is still quite high ... expansion doesn't give you fruit straight away."
Earlier this year, the Indonesian Palm Oil Association forecast that palm production would hit 25 million tonnes this year, while the Agriculture Ministry saw production at 25.7 million tonnes. [ID:nL3E8C43TJ] [ID:nL3E8C933G]
"Too dry," said Suharto, when asked about conditions on palm plantations during the first half of the year. "Last year the rain fall was a bit low ... we predict that this year will be much lower.
"People don't normally open plantations when there is no rainfall because small plantings cannot grow without rain."
The IPOC aims to develop the palm oil industry and gives policy and regulatory recommendations to the Indonesian government.
