JAKARTA, Aug 2 Asia Pulse - The export of Indonesia's crude palm oil (CPO)to India, one of the largest importers for the commodity, has decreaseddue to its lower betacarotene content, a businessman said.

"Indonesia usually exports 200,000 tons of CPO to India per month, butover the past months, its export dropped to 100,000 tons per month becausethe commodity failed to meet the Indian regulation on betacarotenecontent," Derom Bangun, general chairman of the Indonesian Palm OilBusinessmen Union (GAPKI), said here on Sunday.

According to him, India has recently imposed a regulation on the limit ofbetacarotene content of 500 part per million (ppm), which is difficult tobe met by Indonesian exporters.

The Indonesian CPO and its derivative products such as RBD (refinedbleached deodorized) and palm oil have betacarotene content of below 500ppm: between 420 and 480 ppm.

He said the betacarotene content of the commodities decreased when theywere held at ports too long.

Consequently, Derom further said that the importer imposed an additionalimport duty reaching 75 percent and Indonesia's CPO exported to thecountry experienced a drop.

"India imports four million tons of CPO. In the past Indonesia is thelargest exporter to the country but now its position is replaced byMalaysia," he added.

The businessman estimated India's great production of vegetable oil mightaffect the Indonesian exports to that country due to because its (India's)grand harvests of soybeans, peanuts and sunflowers.

Those factors also affected the CPO price which underwent a decrease onthe domestic market to Rp4,000 per kilogram from its previous price ofRp5,000 per kilogram, he noted.

Derom also pointed out cancellation of the purchasing contracts by Chineseimporters had implication on the decreased CPO price both on internationaland domestic markets following the country's policy to slow down itseconomic growth.

Of China's import quota reaching 2.6 million tons, this year Indonesia hasset a target to export 700,000 tons of CPO, higher than its last yearexport reaching 500,000 tons, the businessman said.

"Malaysia dominates the Chinese market of CPO," he added.

(ANTARA)