JAKARTA – The energy crisis in India and China has driven up the palm oil exports of Indonesia. “Palm oil export value in August 2021 reached US$4.42 billion, an increase of US$1.6 billion compared to that of July,” the Indonesian Palm Oil Association (Gapki) Executive Director Mukti Sardjono said in a press release on Friday, 08 October 2021.
The export value increase was also supported by the increase of export volume at 1.532 million tons to 4.274 million tons as compared to that of July 2021 and the increase of CPO average price by US$102/ton to US$1,226/ton CIF Roterdam as compared to that of July 2021.
The export increase was mainly seen in several countries of main destinations. The decrease of import tax in India from 15% to 10% for palm oil and other vegetable oils that was effective during the period of 30 June to 30 September 2021 has pushed up the exports to India to 958.5 thousand tons from 231.2 thousand tons in July 2021.
The export to China rose significantly by 32.6% or 297 thousand tons to 819.2 thousand tons as compared to that of July at 522.2 thousand tons. The exports to Africa also increased significantly, with the largest increase was seen to Kenya (+118 thousand tons), and to Egypt (+40.5 thousand tons) and exports to Malaysia by 102% or 97 thousand tons from 95.1 thousand tons to 192.1 thousand tons.
Although exports to EU-27 dropped by 9.21% from that of the previous month, export to Netherlands increased by 30.7 thousand tons to 203.0 thousand tons or +48% from that of July at 172.3 thousand tons.
Local consumption in August was relatively stagnant at 1,465 thousand tons as compared to that of July at 1,444 thousand tons. The consumption for foods slightly rose to 718 thousand tons in August as compared to that of July at 708 thousand tons, for oleo-chemical reached 178 thousand tons in August as compared to that of July at 180 thousand tons, for biodiesel reached 569 thousand tons in August as compared to that of July at 556 thousand tons.
The CPO production in August reached 4,218 thousand tons and PKO 400 thousand tons or around 04% higher than that of July.
With the achievement of export performance, consumption and production, final stock in August 2021 amounted to 3,433 thousand tons or around 1.1 million tons lower than that of July.
Apparently, the export performance was also impacted by the energy crisis in India and China. In India, the energy crisis was due to low supply of coal, while demand for coal to generate power plants sharply increased after the outbreak of Covid-19 pandemic. The power plants in India have only had coal stocks for 3-4 days, which are very low if compared to the normal stock of three weeks.
The energy crisis in China was caused by a number of policies applied by its government to reduce carbon emissions. President Xi Jinping said that the government will stop the development of coal-fired power plants in several developing countries, in line with the commitment of China to support the renewable energy. (*)
Source: Investor Daily | Featured image amazonaws.com