Indonesia CPO production set to hit 17 mln tons

The Indonesian government has projected crude palm oil (CPO) production to increase by 7.8 percent to 17.44 million tons this year from 2006.

CPO production will pick up during the harvest period from July to December, Industry Minister Fahmi Idris said in a hearing with legislators here on Monday.

Of the estimated production, domestic markets will consume 4.35 million tons while the remaining supply will be sold to export markets, he said.

Earlier in the day, leading CPO producer PT Astra Agro Lestari released a projection that tipped Indonesia to regain the top place as the world's largest CPO producer from Malaysia as immediately as this year.

According to the report published by Detikcom news website, Indonesia is set to produce 17.2 million tons of CPO to control 44. 4 percent of global production, while Malaysia's output is estimated at 16 million tons.

Indonesia and Malaysia currently control more than 80 percent of global CPO supplies.

Source: Xinhua
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