The heavy rains which prevail during the monsoon season were also affecting prices.

Godrej International director Dorab Mistry expected the mandate increase to constrict the supply of crude palm oil (CPO) and to underpin pricing through the first half of 2025.

The B40 mandate will begin in January. “How it will be implemented is still unclear,” a market source said. “It could be in phases, as happened when the country moved to B35.”

The move to B40 in 2025 was part of Indonesia’s broader plan to raise its palm oil-based biodiesel mandate to 50% (B50) by 2028. These increases would remove a significant volume of palm oil from the export market, tightening global supply.

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