2/7/05 Oilmandi - Indonesia expects to increase its crude palm oilexports to India following the latter's decision to relax its strictimport rules, reports Kompas newspaper.

The daily quotes Derom Bangun, the chairman of Indonesian Palm OilProducers Association, or Gapki, as saying Indonesia expects to export 1.2million metric tons of CPO to India this year, up from 960,000 tons in2004, now that India has relaxed its beta carotene requirement forimported CPO.

"I've just received information from India that the beta carotenerequirement has been lowered to 250 parts per million (ppm), from 500 to2,500 ppm," Derom is quoted as saying.

In 2003, the Indian government said CPO imports must contain 500-2,500 ppmbeta carotene. CPO that failed to meet the requirement was viewed asrefined palm oil and subjected to higher import duties.

The strict rule slowed Indonesia's CPO exports to India as Indonesia's CPOcontains less than 500 ppm beta carotene.