In Indonesia, Reuters reports that when the country boosts its biodiesel blending mandate to 40% from the current 35%, available palm oil supplies will tighten. With blending expected to rise to 16 billion liters next year when the mandate increases, up to 1.7 million metric tons of palm oil annually will be diverted towards biodiesel production and no longer available for exports. Production in 2024/25 is expected to increase by 2.3 million tons. Supplies are still weighed upon by rainy weather, expensive fertilizers and knock on effects from the pandemic-related labor shortage.
