JAKARTA, March 16 Asia Pulse - Indonesia hopes to increase exports ofcrude palm oil (CPO) and derivatives to China from an estimated 500,000tons in 2003 to 600,000 tons this year.

Demand is high for CPO and derivatives in China, according to the generalchairman of the association of palm oil companies (Gapki) Derom Bangun.

Bangun yesterday said the price of that commodity is also increasing inthe world market.

In Rotterdam, the price rose to US$550 at present from US$495 per tons inmid-December 2003, he said.

He said China needs around 14 million tons of cooking oils a year and theconsumption is expected to continue to rise significantly from year toyear, to follow the improvement in the public welfare in that country.

Per capita consumption of cooking oil in China is around 10-12 kg a year,not including CPO consumption for its industrial sector, he said.

In 2004, China has increased the CPO import quota to 2.6 million tons from2.4 million tons in 2003.

Bangun predicted that Indonesia's CPO exports will rise 7 per cent thisyear from 6.5 million tons in 2003 and production is expected to increaseto 10.4 million tons from 9.9 million tons in 2003.

The largest single buyer of CPO from Indonesia is India, to which exportstotaled 1.8 million tons in 2002 and 2 million tons in 2003.

This year, however, exports to that country are expected to declinefollowing tighter conditions demanded by the Indian government such as inthe beta carotene content of CPO.

India allows imports of CPO with a beta carotene content of 500-2,500parts per million (ppm). Indonesian CPO has a beta carotene content ofonly 4,500 ppm.

(ANTARA)