B · Normal
[El Niño triggers drought, suspends sailings and accumulates goods, Indonesian small palm farmers have difficulty selling fruits] According to reports, due to the drought caused by the super El Niño phenomenon, the water level of the Kapuas River, Indonesia's longest river and main transportation artery, dropped significantly. As a result, a large amount of processed palm oil in West Kalimantan Province could not be shipped out, resulting in overflowing warehouses. The purchase of palm fruits had to be significantly reduced, leaving thousands of small palm farmers in the dilemma of having fruits difficult to sell. The Indonesian Palm Oil Association (GAPKI) said that 13 of the province's 50 crushing plants were affected by traffic disruptions, equivalent to affecting about half of the province's processing capacity. Due to serious backlog, palm oil supply in September fell by about 11% compared with August. In addition, GAPKI has lowered its 2026 national palm oil production forecast by 2.9% due to dry weather that delays fruit ripening.
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