Global demand for edible oil is expected to expand by about 5 million tonne for the 2007-08 season due to growing bio-diesel green energy need and shrinkage in food demand, according to Dorab Mistry, director, Godrej International Ltd.
Traditional food demand for vegetable oil is expected to grow by only about 3 million tonnes due to current high prices while bio diesel and green energy demand will grow by about two million tonne. ?Overall I expect Demand in 2007-08 to expand by about 5 million tonnes at current prices,? Mistry said at Globoil 2007 held at Goa last Saturday. Global supply for vegetable oil is expected to increase by only 3.9 million tonnes even at current high prices and given the huge increase in palm production.
?On the supply side, there does not appear to be unforeseen availability. However, on the demand side, there is a possibility of demand shrinkage due to recession. I have placed a huge amount of confidence on the central bankers of the world and in particular on Fed chief Ben Bernanke.