Indonesia plans to carry out B40 in January

In that case, prices might rally 10%-15% in Jan-March, Mielke says

B40 will need extra 3 mln heaps feedstock, GAPKI says

Malaysia palm oil criteria at greatest given that mid-2022

India might withdraw import tax trek in the middle of inflation, Mistry says

(Adds expert comments, updates Malaysia's palm oil criteria cost)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recuperate in 2025 after an anticipated drop this year, however rates are expected to remain raised due to scheduled growth of the country's biodiesel mandate, industry analysts stated.

The palm oil criteria cost in Malaysia has risen more than 35% this year, raised by slow output and Indonesia's plan to increase the compulsory domestic biodiesel mix to 40% in January from 35% now in an effort to decrease fuel imports.

Palm oil output next year in leading producer Indonesia is expected to recuperate by 1.5 million metric heaps compared to an approximated drop of simply over a million loads this year, Julian McGill, handling director at Glenauk Economics, informed the Indonesia Palm Oil Conference on Friday.

Thomas Mielke, head of Hamburg-based research study company Oil World, stated he expects Indonesia's palm oil production to increase by as much as 2 million loads next year after a 2.5 million lot drop in 2024.

While Indonesia's output is forecast to enhance, supply from somewhere else and of other veggie oils is seen tightening up.

Palm oil output in neighbouring Malaysia is anticipated to dip slightly next year after increasing by an estimated 1 million heaps in 2024.

"We would require a healing in palm in 2025 because combined exports of soya, sunflower and rapeseed oils are declining," Mielke said.

'FRIGHTENING' PRICE SURGE

The price surge in palm oil in the past 7 weeks has been "frightening" for purchasers, Mielke said, including that it would rally by 10%-15% in January-March if Indonesia enforces the so-called B40 policy.

The Indonesia Palm Oil Association stated additional feedstock of around 3 million tons will be required for B40 implementation, deteriorating export supply.

The current palm oil premium has already triggered palm to lose market share versus other oils, Mielke included.

Malaysian palm oil costs are seen trading at around $950 to $1,050 per metric heap in 2025, McGill of Glenauk estimated.

Benchmark Malaysian palm oil touched 5,104 ringgit ($1,165.30) on Friday, the highest since mid-2022.

"Sentiment today is red-hot and very bullish, we need to beware," said Dorab Mistry, director at Indian durable goods business Godrej International.

He anticipated the Malaysian cost around 5,000 ringgit and above until June 2025.

Mielke and Mistry urged Indonesia to

think about postponing

B40 implementation on concern about its influence on food customers.

Meanwhile, Mistry anticipated leading palm oil importer India to withdraw its

import task walking

imposed from September after elections in the state of Maharashtra in November. ($1 = 4.3800 ringgit) (Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy; Editing by John Mair, Jane Merriman and Daren Butler)