INDONESIA EYES 720,000T IN CHINA PALM OIL QUOTAS
JAKARTA, Jan 29 (Reuters) - Indonesia expects to supply 720,000 tonnes ofpalm oil to China this year, or 30 percent of the big buyer's importquota, the Indonesian Palm Oil Producers Association (GAPKI) said onTuesday.GAPKI chairman Derom Bangun said China would raise its palm oil importquotas to 2.4 million tonnes in 2002 from 1.4 million tonnes last year,following its entry into the World Trade Organisation (WTO)."China is set to issue 2.4 million tonnes in quotas this year and weexpect to take the opportunity of supplying 720,000 tonnes," Bangun toldReuters by telephone from Medan, capital of the palm oil growing area ofNorth Sumatra province.Indonesia is the world's second largest palm oil producer afterMalaysia.Bangun said Indonesia's palm oil exports to China were seen at 450,000tonnes in 2001, some 30-35 percent of China's imports of 1.4 milliontonnes for that year.China imposes quotas on edible oil to limit imports."Rising quotas from China is forecast to boost the prices of palm oil,especially CPO, in the international market," Bangun said.Indonesia's Crude Palm Oil (CPO) was traded at $330 a tonne CIF Rotterdamfor January shipment on Monday. More than 80 percent of Indonesia's palmoil exports are in the form of CPO.Malaysia supplied around 60 percent of China's quotas last year, Bangunadded."This year, they will still control the Chinese market," Bangun said.