Palmoilmagazine, AGRA – Palm oil exports from Indonesia could be increasing in the second semester this year because of the temporary zero levy. But the total exports from Indonesia could be much less in 2022 than the prediction that reached 33,7 million tons because of the previous lockdown, as quoted from Reuters.
Chairman in Trade and Promotion Indonesian Palm Oil Association (IPOA), Fadhil Hasan said, if the exports decrease, the stock would be bigger or about 5 million tons by the late of this year from the previous that reached 4,1 million tons
“The exports would be higher in the second semester this year but it would not balance the decreasing export in the first semester,” Fadhil told in the Globoil conference in Agra, India, as quoted from The Star.
Indonesia limited palm oil exports in the first semester this year to press palm cooking oil price. But the policy increased palm oil stocks to the highest level and some producers should stop buying the smallholders’ fresh fruit bunch (FFB).
Palm oil producers in Indonesia now try to empty their storage after the government extends the zero levy until 31 October 2022. Hasan suggested, the Government of Indonesia should implement the zero levy until December 2022 to reduce the next production - stocks. (T2)
