InfoSAWIT, NUSA DUA — Strong optimism for a global palm oil price surge emerged at the Indonesia Palm Oil Conference (IPOC) 2025, where Dorab Mistry, Director of Godrej International Ltd., presented factors he believes will drive the industry into a bullish phase throughout 2026. However, he warned that the momentum heavily relies on the role of governments, especially Indonesia.

Mistry's analysis rests on a simple fundamental: stagnant global vegetable oil production against continuously increasing demand.

"Oilseed prices at current levels are not attractive. Farmers globally are unhappy and not profitable. Oilseed planting is stagnant in almost all countries," he said. "Palm production is also flat, productivity is declining, while biodiesel continues to grow due to good subsidies and environmental push."

This situation, Mistry argues, forms the foundation for a bullish scenario. He predicted that global crude oil prices, a key factor, would rise next year, providing additional catalyst for palm oil price strengthening.

Mistry specifically projected that palm oil prices have the potential to break through RM 5,500 per ton in 2026.

He called out Indonesia and Malaysia, urging the government to encourage plantation growth rather than imposing policies that could slow the industry down. (T2)