Indian palm oil output rises for fourth straight month

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Indian palm oil output rises for fourth straight month

The world's second-largest producer's output increased for the fourth month in a row. It grew by 2 per cent to 1.76 million tons.

Exports went up 8 per cent to 1.41 million tons as top buyer India stocked up on edible oil ahead of the Diwali festival in October.

India's palm oil imports went up to their highest in a year in September, boosted by strong demand for tropical oil ahead of the festival season and a steep discount compared to rival oils.

Demand for palm oil has been subdued due to the tight COVID 19 restrictions and intermittent lockdowns in key importer China that hurt consumption levels, weighing on the benchmark futures contract.

There will be an announcement on the easing of China's zero-COVID policy during the ruling Communist Party's national congress beginning October 16, according to a Kuala Lumpur-based analyst.

Demand can be expected to pick up as the country starts to revert to a post-COVID normal, according to the analyst.

Indonesia, the world's biggest producer of palm oil, may extend an export levy waiver on edible oil to the end of this year. The Malaysian Palm Oil Board MPOB is scheduled to release its data on October 11.