![\"\"](\"https:\/\/i0.wp.com\/gapki.id\/en\/allies-en\/uploads\/2022\/09\/replanting_ilustrasi_bisnis.com_.jpg?resize=864%2C509&ssl=1\")
<\/a><\/p>\nThe seedlings shortfall could slow plantation, capping production growth and keeping palm oil prices elevated, industry officials said, as the world already grapples with lofty inflation. Asia produces more than 90% of the world’s cheapest edible oil used in cooking, baking and cosmetics.<\/p>\n
The production growth of palm oil stalled in recent years, partly due to labor shortages during the Covid-19 pandemic, but farmers are now looking to replant or expand plantations amid rising prices.<\/p>\n
The demand surge comes as supply for germinated sprouts, used to make seedlings, has fallen as oil palm nurseries scaled down production during the pandemic to adjust to weaker demand.<\/p>\n
Traditional growers Indonesia and Malaysia, which account for more than 80% of the global palm oil output, are focusing on replacing old oil palm trees that are cumbersome to harvest and less productive, while India and Thailand are trying to expand acreage, industry officials said.<\/p>\n
“A number of big Malaysian estates (have decided) they want to replant, causing a shortage of availability of seedlings in the market,” said Tan Kim Tun, a Malaysian nursery operator based in the state of Johor.<\/p>\n
Global annual palm oil production growth slowed to 0.5% between 2018 and 2022 from a 4.8% pace in the previous four years, according to data compiled by the U.S. Department of Agriculture.<\/p>\n
Against this backdrop, palm oil prices hit a record high of 7,268 Malaysian ringgit ($1,606.19) per ton this year and remain above the average seen in 2010-2020 despite a big downward correction recently.<\/p>\n
New plants take four years to grow before harvest, meaning production will stay tepid and prices high for a while yet, said a New-Delhi based dealer with a global trading firm.<\/p>\n
“As the productive trees are chopped, production growth will remain negligible for a few years,” said the dealer. “Replanting will support palm oil prices for the next few years.”<\/p>\n
SEED SHORTAGE<\/strong><\/p>\nOil palm nurseries will struggle to ramp up output overnight to meet strong demand as it takes more than a year to make a seedling.<\/p>\n
“We can increase our capacity but it will take time… it will at least take one year before you can get (a) germinated seed. The shortage cannot be resolved fast,” said Ahmad Parveez Ghulam Kadir, director-general of Malaysian Palm Oil Board (MPOB).<\/p>\n
Industry officials estimate Malaysia has the capacity to produce up to 80 million germinated sprouts a year and Indonesia 200 million sprouts.<\/p>\n
Indonesia, however, can currently only produce half of that amount, or 110 million per year, said Hasril Hasan Siregar, head of research and productivity improvement at Indonesian Palm Oil Association (GAPKI).<\/p>\n
Meanwhile, Indonesia uses around 95% of the seedlings it produces to meet domestic demand and exports only around 5%, Siregar said, forcing importers such as India and Myanmar to rely on Malaysia and Thailand.<\/p>\n
Indeed, demand for Malaysia’s germinated seeds surged 30% in Jan-Aug 2022 period from a year ago to nearly 38 million seeds, according to data compiled by the MPOB. For Indonesia’s sprouts, demand jumped nearly 24% over the same period.<\/p>\n
Demand for Malaysia’s germinated seeds is so high, that some nurseries are having to reject orders, said Tan, adding that his nursery has a waiting list of around 6 months.<\/p>\n
All of this is causing problems for India, which is aiming to rapidly expand its oil palm area.<\/p>\n
“The world needs more and more palm oil. For many poor consumers, it’s the only option,” said a Mumbai-based dealer with a global trading firm. The dealers declined to be named because of company policy.<\/p>\n
India needs 20 million sprouts in 2022 but only 75% of that demand has been met by imports from Indonesia, Malaysia, Thailand and Costa Rica so far this year, said an official with TS Oilfed, India’s biggest importer of oil palm sprouts, who declined to be named because of company policy. (*)<\/p>\n
Source: economictimes.indiatimes.com \/ Reuters<\/em> | Featured imaga via bisnis.com<\/em><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"
MUMBAI\/KUALA LUMPUR\/JAKARTA — Farmers across Asia are busy planting trees to boost palm oil production but nurseries are struggling to keep up with demand for sprouts and seedlings, risking a delay in the industry’s recovery from the COVID-19 pandemic.<\/p>\n","protected":false},"author":1,"featured_media":22015,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[3708,3709],"tags":[],"class_list":["post-22014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publication","category-recent-news"],"yoast_head":"\n
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So far, there is no oil palm company in Kalteng that had\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/05\/operasional_industrisawit_tetap_buka_picturevia_astraagro.jpg?fit=800%2C485&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/05\/operasional_industrisawit_tetap_buka_picturevia_astraagro.jpg?fit=800%2C485&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/05\/operasional_industrisawit_tetap_buka_picturevia_astraagro.jpg?fit=800%2C485&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/05\/operasional_industrisawit_tetap_buka_picturevia_astraagro.jpg?fit=800%2C485&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":22621,"url":"https:\/\/gapki.id\/en\/news\/2023\/02\/01\/cost-of-compliance-to-eu-law-will-heavily-hit-growers\/","url_meta":{"origin":22014,"position":1},"title":"Cost Of Compliance To EU Law Will Heavily Hit Growers","author":"admin","date":"February 1, 2023","format":false,"excerpt":"The authorities and local trade organizations in major palm oil-producing countries have voiced opposition to the EU Parliament\u2019s newly proposed due-diligence requirements to ensure deforestation-free commodity supply chains. The stringent sustainability credentials law will have a debilitating impact on palm oil exporters, particularly in Indonesia and Malaysia. Palm oil is\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/02\/palmoil_thai-german-cooperation.info_.png?fit=918%2C524&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/02\/palmoil_thai-german-cooperation.info_.png?fit=918%2C524&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/02\/palmoil_thai-german-cooperation.info_.png?fit=918%2C524&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/02\/palmoil_thai-german-cooperation.info_.png?fit=918%2C524&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":18235,"url":"https:\/\/gapki.id\/en\/news\/2020\/04\/13\/gapki-hopes-local-demand-to-raise-palm-oil-price-during-covid-19\/","url_meta":{"origin":22014,"position":2},"title":"GAPKI Hopes Local Demand To Raise Palm Oil Price During Covid-19","author":"admin","date":"April 13, 2020","format":false,"excerpt":"Jakarta \u2013 The Indonesian Palm Oil Association (GAPKI) Chairman Joko Supriyono has ensured that production process and transportation of Indonesia\u2019s palm oil is not affected by the Coronavirus disease 2019 (Covid-19) pandemic. But the palm oil industry is still facing the weakening condition of the global market. The domestic absorption\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/04\/pandemicovid_cnbc_joko_supriyono_wfh.jpg?fit=873%2C469&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/04\/pandemicovid_cnbc_joko_supriyono_wfh.jpg?fit=873%2C469&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/04\/pandemicovid_cnbc_joko_supriyono_wfh.jpg?fit=873%2C469&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2020\/04\/pandemicovid_cnbc_joko_supriyono_wfh.jpg?fit=873%2C469&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":31703,"url":"https:\/\/gapki.id\/en\/news\/2026\/07\/29\/look-deeper-into-3-types-of-oil-palm-dura-tenera-and-pisifera\/","url_meta":{"origin":22014,"position":3},"title":"Look Deeper Into 3 Types Of Oil Palm: Dura, Tenera, and Pisifera","author":"admin","date":"July 29, 2026","format":false,"excerpt":"The oil palm (Elaeis guineensis) is an oil plant that produces palm oil, which has a leading position in the global market of vegetable oils. It plays a strategic role in the economic and social development of Indonesia. In the Indonesia\u2019s oil palm plantations, there are three main types of\u2026","rel":"","context":"In "Publication"","block_context":{"text":"Publication","link":"https:\/\/gapki.id\/en\/news\/category\/publication\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/dura_tenera_pisifera_.jpg?fit=1185%2C650&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/dura_tenera_pisifera_.jpg?fit=1185%2C650&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/dura_tenera_pisifera_.jpg?fit=1185%2C650&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/dura_tenera_pisifera_.jpg?fit=1185%2C650&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2026\/08\/dura_tenera_pisifera_.jpg?fit=1185%2C650&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":28038,"url":"https:\/\/gapki.id\/en\/news\/2024\/06\/21\/gapki-asks-for-legal-certainty-to-grow-palm-oil-stronger\/","url_meta":{"origin":22014,"position":4},"title":"GAPKI Asks for Legal Certainty To Grow Palm Oil Stronger","author":"admin","date":"June 21, 2024","format":false,"excerpt":"JAKARTA \u2013 Palm oil is the most strategic commodity for Indonesia as the world\u2019s largest producer and exporter of palm oil. To maximize its benefits for generating national economic growth and improving public welfare, the Indonesian palm oil industries need legal clarity and certainty.\u00a0 \u201cThe palm oil industries need a\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/hadisugeng_sekjen_sawitkita.id_.jpg?fit=942%2C632&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/hadisugeng_sekjen_sawitkita.id_.jpg?fit=942%2C632&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/hadisugeng_sekjen_sawitkita.id_.jpg?fit=942%2C632&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2024\/06\/hadisugeng_sekjen_sawitkita.id_.jpg?fit=942%2C632&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":26216,"url":"https:\/\/gapki.id\/en\/news\/2023\/01\/26\/palm-oil-industrys-performance-in-2022\/","url_meta":{"origin":22014,"position":5},"title":"Palm Oil Industry\u2019s Performance In 2022","author":"admin","date":"January 26, 2023","format":false,"excerpt":"Press Release Indonesian Palm Oil Association (IPOA) Palm Oil Industry\u2019s Performance In 2022 The year 2022 in Indonesia was marked by unusual incidents which include extreme wet weather, surging cases of Covid-19 in February, the outbreak of Russia \u2013 Ukraine war in February, very high prices of vegetable oils that\u2026","rel":"","context":"In "Info & Activity"","block_context":{"text":"Info & Activity","link":"https:\/\/gapki.id\/en\/news\/category\/info-activity\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/palmoil_tree_oilpalm_palmdoneright.com_.png?fit=967%2C557&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/palmoil_tree_oilpalm_palmdoneright.com_.png?fit=967%2C557&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/palmoil_tree_oilpalm_palmdoneright.com_.png?fit=967%2C557&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2023\/01\/palmoil_tree_oilpalm_palmdoneright.com_.png?fit=967%2C557&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack_featured_media_url":"https:\/\/i0.wp.com\/gapki.id\/en\/dir-site\/uploads\/2022\/09\/replanting_ilustrasi_bisnis.com_.jpg?fit=864%2C509&ssl=1","_links":{"self":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/22014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/comments?post=22014"}],"version-history":[{"count":0,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/posts\/22014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media\/22015"}],"wp:attachment":[{"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/media?parent=22014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/categories?post=22014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gapki.id\/en\/wp-json\/wp\/v2\/tags?post=22014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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