Indonesian palm oil exports fell in August as Indian traders reduced shipments due to high import duties, the agency said. Reuters on October 17th.
The world's largest palm oil producer exported 2.89 million tons of palm oil, biodiesel and oleochemicals in August, compared to 3.3 million tons the previous year and 2.92 million tons in July, according to data from the Association Indonesian Palm Oil (GAPKI).
Palm oil and palm oil exports to India also fell in August to 2.53M tonnes, down 15% a year but slightly up from 2.51M in July.
GAPKI President Joko Supriyono said import duties of up to 50% on Indonesian palm oil remain a huge burden on local producers.
“If we look carefully, over the long term, it appears that (palm oil) export volumes to India are increasing,” he said. “But the market share is not, because soybean and rapeseed shares are increasing.”
Indian refiners also stopped buying palm oil from rival Malaysia for November and December shipments, fearing that New Delhi would increase import taxes or apply other measures to curb imports from the country.
Reuters wrote that India was considering restricting imports of some Malaysian products, including palm oil, after Kuala Lumpur criticized New Delhi for its actions in the disputed region of Kashmir.
Meanwhile, Indonesia's palm oil production increased in August, taking stocks to their highest level so far this year at 3.8 million tonnes, GAPKI said.
However, palm oil shipments from Indonesia to China and the Middle East increased in August, said GAPKI executive director Mukti Sardjono.
Source: OFI Magazine
