Indonesia plans to carry out B40 in January

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

B40 will require additional 3 mln heaps feedstock, GAPKI says

Malaysia palm oil criteria at greatest given that mid-2022

India might withdraw import tax trek amid inflation, Mistry says

(Adds expert remarks, updates Malaysia's palm oil standard price)

By Bernadette Christina

NUSA DUA, Indonesia, Nov 8 (Reuters) - Indonesia's palm oil output is forecast to recuperate in 2025 after an expected drop this year, but costs are expected to stay elevated due to organized expansion of the nation's biodiesel mandate, market experts said.

The palm oil benchmark rate in Malaysia has actually risen more than 35% this year, lifted by slow output and Indonesia's plan to increase the mandatory domestic biodiesel mix to 40% in January from 35% now in an effort to reduce fuel imports.

Palm oil output next year in top manufacturer Indonesia is expected to recuperate by 1.5 million metric loads compared to an estimated drop of just over a million tons this year, Julian McGill, managing director at Glenauk Economics, told the Indonesia Palm Oil Conference on Friday.

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

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

Palm oil output in neighbouring Malaysia is expected to dip a little next year after increasing by an approximated 1 million lots in 2024.

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

'FRIGHTENING' PRICE SURGE

The price rise in palm oil in the previous 7 weeks has actually been "frightening" for buyers, Mielke stated, adding that it would rally by 10%-15% in January-March if Indonesia enforces the so-called B40 policy.

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

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

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

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

"Sentiment today is red-hot and incredibly bullish, we have to take care," said Dorab Mistry, director at Indian consumer goods business Godrej International.

He forecast the Malaysian rate around 5,000 ringgit and above till June 2025.

Mielke and Mistry prompted Indonesia to

think about delaying

B40 implementation on concern about its impact on food customers.

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

import task hike

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