Indonesian palm oil is getting squeezed from both sides: El Nino drought and fires are hitting output in Kalimantan and Sumatra while biodiesel policy lifts demand. The trade association forecasts fal

What happened: Indonesia's palm oil industry faces shortages as a severe El Nino and fires threaten production in Kalimantan and Sumatra, while demand rises from the government's push to expand biodiesel use. Key numbers: Trade association forecasts falling output in 2027. Industry conference held in Bali on Nov. 12-13. Why it matters: A trade association forecasts falling output in 2027 and calls the situation "stressful," with drought and fires hampering production even as biodiesel demand grows.

Indonesia's palm oil industry faces shortages as a severe El Nino and fires threaten production in Kalimantan and Sumatra, while demand rises from the government's push to expand biodiesel use.

A trade association forecasts falling output in 2027 and calls the situation "stressful," with drought and fires hampering production even as biodiesel demand grows.