How El Niño Impacts Palm Oil Prices and India's Edible Oil Market
How El Niño Impacts Palm Oil Prices and India's Edible Oil Market
Global · Published Oct 13, 2026
• El Niño-related weather disruptions in Indonesia could impact palm oil production and prices, affecting India's edible oil market.
• Learn how seasonal demand and global factors interact.

El Niño's Role in Palm Oil Production

El Niño, a global weather phenomenon, can disrupt agricultural production by causing droughts and altering rainfall patterns. According to Dr. Mohamad Fadhil Hasan of the Indonesian Palm Oil Association, El Niño could lead to a 4–5 million-tonne decline in Indonesia's palm oil production. This reduction, coupled with increased domestic consumption due to Indonesia's B50 biodiesel programme, may limit exports and push up global palm oil prices.

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