Palm | Kelapa Sawit

KUALA LUMPUR, Nov 20 (Reuters) - Malaysia may see a decline in record stocks of palm oil from December as bad weather hits output and the government pushes forward with its biodiesel and replanting plans, an industry regulator said on Thursday.

Better food demand from top importers China, India and Pakistan next year could accelerate the decline in stocks in the world's second largest producer of the vegetable oil, Malaysian Palm Oil Board Chairman Sabri Ahmad said.

December would see 100,000 tonnes less palm oil from November as Sabah state on Borneo island and the eastern peninsular Malaysia, which account for 50 percent of total production, will be worst affected by the floods.

The government is likely to carry out its plans on biodiesel and replanting over a year in 2009 rather than taking two years or more, Sabri said.

"The biodiesel association has agreed to buy up 500,000 tonnes of crude palm oil in 2009," Sabri said.