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CommodityWireIndonesia June crude palm oil output up nearly 16% on month - palm oil body

Indonesia June crude palm oil output up nearly 16% on month - palm oil body

This story was originally published at 17:42 IST on 22 August 2025
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Informist, Friday, Aug. 22, 2025

 

MUMBAI – Crude palm oil production in Indonesia rose nearly 16% from a month ago to 4.8 million tonnes in June, according to a release by Indonesian Palm Oil Association. Palm kernel oil output rose to 465,000 tonnes in June from 396,000 tonnes a month ago, the association said. The combined production of palm oil and palm kernel oil rose to 27.9 million tonnes in Jan-Jun, up around 6.5% on year, it said.

 

Domestic palm oil consumption increased slightly in June, the association said. The consumption demand from the oleochemical industry increased to 192,000 tonnes, up 2.7% from 187,000 tonnes in May. The consumption from the biodiesel industry climbed nearly 4% to 1.1 million tonnes in June. On the other hand, demand from the food industry fell 0.4% from a month ago to 800,000 tonnes in June, the release said. 

 

Total exports of palm oil products in June surged a whopping 35.4% on month to 3.6 million tonnes. The sharpest rise in exports was in processed palm oil, which rose to 2.6 million tonnes. Crude palm oil exports also jumped to 418,000 tonnes, but oleochemical exports declined to 420,000 tonnes from 437,000 tonnes in June, the association said.

 

The growth in exports in June was mainly driven by shipments to China, which rose by 283,000 tonnes, followed by exports to India, up by 224,000 tonnes, and Africa, up by 125,000 tonnes, the Palm Oil Association said. Indonesia's exports of palm oil and its products to Pakistan rose by 69,000 tonnes, to Russia rose by 65,000 tonnes, to the US rose by 58,000 tonnes, and to Bangladesh rose by 47,000 tonnes in June. Indonesia's exports of palm oil to Malaysia and the European Union also saw an increase in June. 

 

The export value of palm oil products in June increased to $3.6 billion, up nearly 29% from $2.8 billion in May. The export value in Jan-Jun increased to $17.27 billion, up nearly 35% from the corresponding period of last year. "The increase was supported not only by higher export volumes but also by stronger average prices, with Jan–Jun 2025 CIF Rotterdam (Cost, Insurance, and Freight at the port of Rotterdam) prices averaging $1,180 per tonne, compared to $1,000 per tonne in the same period of 2024," according to the press release.

 

While the stocks of crude palm oil and palm kernel oil at the beginning of the month were 2.9 million tonnes, the stock at the end of June fell to 2.5 million tonnes, the release said.  End

 

US$1 = INR 87.53

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Taniva Singha Roy

Edited by Saji George Titus

 

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