Informist, Friday, Sep 20, 2024

--Indonesia board Hasan: Palm oil output seen dn at 53.3 mln tn 2024

--Indonesia board Hasan: Palm oil exports seen 26 mln tn 2024

--Indonesia board Hasan: Exported 32.2 mln tn pam oil 2023

By Anjali Lavania and Sandeep Sinha

MUMBAI – Production of crude palm oil and crude palm kernel oil in Indonesia is expected to fall by 1.5 mln tn to 53.3 mln tn in 2024, Fadhil Hasan, head of foreign affairs department, Indonesian Palm Oil Association, told Informist on the sidelines of 'Globoil India 2024'. The country had produced 54.84 mln tn crude palm oil and crude palm kernel oil in 2023.

Hasan said that the production in Indonesia has been on a downtrend for the last five years and is unlikely to increase next year. He sees crude palm oil prices staying stable due to tight supply and declining exports from Indonesia. The drought situation that country had faced since late last year is over and is unlikely to impact palm crop next year.

He expects Indonesia's palm oil exports to fall to 26 mln tn this year from 32.2 mln tn last year. In Jan-Jul, the country had exported 17.3 mln tn palm oil, he said.

According to Hasan, domestic consumption of palm oil has increased to around 40% in 2023 of total palm output from 28.5% in 2018. In the current calendar year, the country’s biofuel consumption is expected to reach 15 mln tn from 10.6 mln tn and food consumption and oleochemicals are seen at 13 mln tn. The palm oil demand for biofuel is higher than food consumption and the trend is estimated to go higher with the government shifting to mandatory B40 fuel from Jan 1 and inch further higher as the government rolls out B50. B40 and B50 are biodiesel blends that can be used as an alternative to diesel fuel.

The Indonesian government on Thursday lowered the export duty on crude palm oil to $63 a tn from $90, which is likely to make their exports more competitive. He said that Indian government raising the import duty on edible oil may force Indonesia to look at other export destinations. He expects exports to India to remain stable this year. Exports to India have risen 5.6% on year in Jan-Jun to 2.52 mln tn. The country exported 5.97 mln tn palm oil to India in 2023, he said.

When asked about Indonesia launching a crude palm oil index similar to Malaysia, Hasan said that they have not developed an index for international market, but they have developed an index for the domestic market for palm oil. The country’s chief regulator had told Reuters in October 2023 that it would launch crude palm oil futures exchange to drive global palm oil prices and create benchmarks similar to Kuala Lumpur and Rotterdam. End

US$1 = 83.56 rupees

Edited by Akul Nishant Akhoury

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