Indonesia plans to carry out B40 in January

Because case, costs may rally 10%-15% in Jan-March, Mielke states

B40 will need additional 3 mln heaps feedstock, GAPKI says

Malaysia palm oil criteria at highest since mid-2022

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

(Adds analyst comments, updates Malaysia's palm oil standard price)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is anticipated to recover in 2025 after an expected drop this year, however costs are anticipated to stay raised due to planned growth of the nation's biodiesel mandate, market analysts stated.

The palm oil standard rate in Malaysia has risen more than 35% this year, raised by sluggish output and Indonesia's plan to increase the compulsory domestic biodiesel blend to 40% in January from 35% now in an effort to minimize fuel imports.

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

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

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

Palm oil output in neighbouring Malaysia is expected to dip somewhat next year after increasing by an estimated 1 million loads in 2024.

"We would need a recovery in palm in 2025 since combined exports of soya, sunflower and rapeseed oils are decreasing," Mielke said.

'FRIGHTENING' PRICE SURGE

The cost rise in palm oil in the previous 7 weeks has been "frightening" for buyers, Mielke said, including that it would rally by 10%-15% in January-March if Indonesia implements the so-called B40 policy.

The Indonesia Palm Oil Association stated extra feedstock of around 3 million loads will be needed for B40 application, down export supply.

The existing palm oil premium has currently caused palm to lose market share against other oils, Mielke added.

Malaysian palm oil rates are seen trading at around $950 to $1,050 per metric load in 2025, McGill of Glenauk approximated.

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

"Sentiment today is red-hot and extremely bullish, we have to beware," stated Dorab Mistry, director at Indian customer items business Godrej International.

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

Mielke and Mistry advised Indonesia to

consider postponing

B40 application on concern about its effect on food consumers.

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

import duty 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)