Malaysia looking at ways to boost domestic demand for palm oil beyond B10

In Malaysia, in light of the largest palm oil stocks seen in 18 years and prices currently three-year lows of around $505 per metric ton, Reuters reports that the government is looking at ways to boost demand locally for palm oil to help reduce the surplus and boost prices. Already the government cut export duties on palm oil to nil in September, but its palm oil exports are still challenged to compete against Indonesia. Although the biodiesel blending mandate will increase to 10% next year from the current 7%, the domestic fuel market is small compared to Indonesia so the increased demand will be limited.