MARKET DEVELOPMENT
Indonesia's Jan, Feb palm oil exports seen slowing -estate crop fund
Indonesia's Jan, Feb palm oil exports seen slowing -estate crop fund
25.02.2022 (www.nasdaq.com) - JAKARTA, Feb 25 (Reuters) - Indonesia's palm oil exports are estimated at 2.34 million tonnes in January, while exports between Feb 1-24 are seen at 1.70 million tonnes, Eddy Abdurrachman, chief executive of the agency in charge of collecting palm oil levies (BPDPKS), said.
In comparison, Indonesia exported 3.35 million tonnes of palm oil products in January 2021 and 2.40 million tonnes in February 2021, BPDPKS data showed.
Indonesia, the world's biggest palm oil producer, late in January announced a restriction on palm oil exports in order to secure domestic supply and control prices of cooking oil that had shot up 40% at the start of the year. L1N2U70U2
Companies are required to sell 20% of their planned exports to local buyers at a set maximum prices for crude palm oil and olein, which had an impact on exports in February, Eddy said.
"In the beginning, there must be special preparation by the exporters to meet with requirements, thus affecting export activities," he told an online media briefing.
Global prices of palm oil have surged to historical highs in the past year as global demand for vegetable oils recovered from the impact of coronavirus pandemic, while output from top producers Indonesia and Malaysia has slowed.
(Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy Editing by Ed Davies)