Indonesia warned over its biodiesel plan

Higher rate: A worker unloads oil palm fruits to a local palm oil factory in the Serdang Bedagai district of North Sumatra. Under its Biodiesel Mandate, Indonesia plans to increase the blending rate between palm oil and diesel at 20 this year, up from 15 last year. — Reuters

KUALA LUMPUR: Indonesia should not push its Biodiesel Mandate – a move targeted to increase the utilisation of palm oil – too hard and squeeze the market, as it might lose its appeal to other developing nations, cautioned leading vegetable oils analyst Dorab Mistry.

Also known as the B20 programme, Mistry said at the Palm and Lauric Oils Conference and Exhibition 2016 that the initiative, although late, had a good start than what he had anticipated.