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Informist, Thursday, Oct. 30, 2025

 

MUMBAI – Production of crude palm oil in Indonesia in August reached 5.06 million tonnes down 1% from 5.11 million tonnes during the previous month, the Indonesia Palm oil Association said in a release Thursday. Palm kernel oil production also fell to 481,000 tonnes in August from 493,000 tonnes the previous month, it said.

 

The total production of crude palm oil and palm kernel oil reached 39 million tonnes until August 2025, up over 13% from the same period a year ago, the association said. Total domestic consumption rose to 2.1 million tonnes in August from 2.03 million tonnes in July, it said.

 

The biggest increase was seen in diversion of palm oil for biodisel production. In August, 1.11 million tonnes of palm oil was used for biodisel production, which is nearly 6% up from 1.05 million tonne in July, it said. Meanwhile, consumption of palm oil for oleochemical saw a decrease of 1.08% on month to 183,000 tonnes in August, according to the release. 

 

Total exports of palm oil products from Indonesia in August reached 3.47 million tonnes, down nearly 2% from July. Exports of crude palm oil decreased significantly by 21% to 494,000 tonnes in August from 626,000 tonnes against the previous month and oleochemical exports fell 0.5% on month to 436,000 tonnes, according to the release. 

 

On the other hand, exports of processed palm oil from Indonesia rose on month by 1.6% to 2.34 million tonnes in August, it said. Processed palm kernel oil exports from the country increased over 21% on month to 199,000 in August, the association said. 

 

Exports of palm oil products to India fell the most by 160,000 tonnes in August and exports to Bangaladesh fell by 76,000 tonnes. Indonesia's palm oil products exports to Pakistan also fell by 48,000 tonnes in August, the release said.

 

Meanwhile, exports to Malaysia rose the most in August by 103,000 tonnes, followed by exports to China, which rose by 101,000 tonnes and exports to Africa rose by 40,000 tonnes in August. To the European Union, exports on palm oil products from Indonesia rose by 32,000 tonnes while exports to Russia rose by 6,000 tonnes and to the US exports were up by 4,000 tonnes in August, it said.

 

Export value of palm oil products rose 3.5% on month to $3.82 billion in August. The export value of Indonesian palm oil during Jan-Aug reached $24.79 billion, up nearly 43% from the same period a year ago. The increase of export value was mainly driven by an average price crude palm oil during Jan-Aug which was at $1,204 per tonne cost, insurance, and freight Rotterdam higher than $1,009 per tonnes during the same period a year ago, the Association said.

 

The initial stock in August at 2.57 million tonnes and total production of crude palm oil and palm kernel oil was at 5.54 million tonnes. With domestic consumption at 2.1 million tonnes and exports at 3.47 million tonnes, final stock by the end of August 2025 dropped to 2.54 million tonnes.  End

 

Reported by Taniva Singha Roy

Edited by Deepshikha Bhardwaj

 

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