MPOB director-general Ahmad Parveez Ghulam Kadi said this included an expected increase in crude palm oil (CPO) production by 2.9% or 19.7 million tonnes, palm oil exports by 0.7% or 17.5 million tonnes, and palm oil stocks by 58.7% or two million tonnes.

He said the sector’s export revenue is expected to reach RM74 billion in 2021, a 2.4% increase from 2020.

Ahmad Parveez said MPOB also predicted firmer CPO prices at RM3,000 per tonne, spurred by the government’s biodiesel programme, firmer soybean oil prices and slower palm oil production growth in the first quarter of 2021.

“This year is expected to bring higher prospects for the industry, with all the key indicators of the industry projected to show a better performance,” he said at a palm oil economic review and outlook virtual conference today.

“The plantation industries and commodities ministry, MPOB and other related agencies will continue to work closely with the industry players in facing the ongoing challenges for the sustenance of the Malaysian palm oil industry.”

Singapore-based Sathia Varqa of Palm Oil Analytics also predicted the sector’s production and exports to increase, but said this may be affected should another movement control order be imposed in light of the high number of Covid-19 cases in several states.

He said Malaysia’s B20 biodiesel consumption will unlikely increase for the year, while its year-end stocks for 2021 could be at 1.3 million tonnes to 1.5 million tonnes.

“However, domestic consumption will be lower by 12% (three million tonnes) because of the increasing prices. Consumers are limiting their buying and retailers are also reducing their stocks,” he said.