JAKARTA – The Indonesian Palm Oil Association (GAPKI) has stated that the policy of crude palm oil (CPO) export ban during the period of 28 April – 23 May 2022 had not only impacted the palm oil export performance, but also its production.
GAPKI Executive Director Mukti Sardjono said that agronomically the production of fresh fruit bunches (FFB) increased. But industrially, the CPO production in May was 18% lower than that in April.
“The market condition was even worsened by the fact that a number of companies limited their harvest and purchase of FFB from smallholders due to the limited capacity of their storage tanks,” Mukti said on Friday, 15 July 2022.
He pointed out that the palm oil export in May 2022 was only 678 thousand tons or a decrease of 68% from the export in April at 2,089 thousand tons. The largest decrease was seen in CPO and processed CPO.
The export of oleochemical in May reached 318 thousand tons, which was relatively the same with that in April at 319 thousand tons.
“Compared to the export in April, Indonesia’s export in May to China dropped 28%, to USA dropped 32%, to Philippines dropped 52%, to Russia dropped 64%, to European Union (EU) dropped 64%, to Singapore dropped 67%, to India dropped 80%, to Pakistan dropped 90%, and to Bangladesh dropped 98%,” said Mukti.
The price of CPO Cif Rotterdam in May reached US$1,714/ton, as compared to that in April at US$1,719/ton. So was the domestic tender price from US$1,144.7 in April to US$936.0 in May 2022.
“The decrease of CPO price caused the decrease of FFB price received by smallholders,” he said.
Mukti added that the local consumption of palm oil in May reached 1,610 thousand tons, which was 8.0% lower than that of April. The consumption of palm oil for foods rose by 3.0% from 812 thousand tons in April to 837 thousand tons in May. Its consumption for biodiesel production in May reached 590 thousand tons or 22% lower than such consumption in April at 755 thousand tons.
He said that the decline of export performance had caused the rise of final stock from 6.1 million tons in April to 7.2 million tons in May. (*)
Source: sindonews.com
