Palm oil output that does not cut down forests and harm wildlife may double to 3 million tonnes by the end of this year as benchmark Malaysian prices steadily rise, an industry official said on Monday.

The bulk of it will come from Malaysia as big planters come closer to ensuring their estates, mills and processors comply with commitments set by the industry-driven Roundtable on Sustainable Palm Oil (RSPO).

The grouping’s secretary general Vengeta Rao said planters like Sime Darby ( SIME.KL ), IOI Corp ( IOIB.KL ) and Kuala Lumpur Kepong ( KLKK.KL ) will have a comprehensive supply chain for green palm oil within two years and higher prices encourage this.

” I would estimate that to-date production of 1.5 million tonnes of certified green palm oil will double at the end of this year, ” Rao said at the Reuters Food and Agriculture Summit.

” Higher palm oil prices will encourage companies to be more sustainable and as more supply comes in, the green palm oil’s premium goes down, encouraging more consumers to go green. ”

source: http://www.reuters.com/article/idUSTRE62E1SE20100315