India To Import 2.6m Tons Of Palm Oil From Indonesia

Jakarta —  India has been committed to importing 2.6 million tons of palm oil from Indonesia with a total value of US$3.16 billion or around Rp46.8 trillion (Rp14,837 per US dollar).

Trade Minister Zulkifli Hasan said that the palm oil import was secured during a trade mission he led to New Delhi in August 2022. “Indian businessmen have agreed to import 2.6 million tons of palm oil at the value of US$3.16 billion. It is the biggest part of the total exports we managed to secure during the trade mission,” the minister said in a press statement on Tuesday, 23 August 2022.

India is the second biggest importer of palm oil from Indonesia after China, with a total export value of US$3.4 billion or 25 percent of Indonesia’s total exports to India in 2021.

Minister Zulkifli Hasan said that the trade mission to India was participated by 10 business players & exporters and representatives of business associations from Indonesia.

During the mission, the Indonesian business players and their counterparts from India signed 22 memorandums of understanding (MoU) on trading of several top commodities of Indonesia, which include palm oil products, coal, furniture, plastic utensils, and pulp and paper.

Based on data from Statistics Indonesia (BPS), which is processed by the trade ministry, the total trading value between Indonesia and India reached US$16.67 billion during the period of January-June 2022.

Total non-oil-gas exports of Indonesia to India during the same period reached US$15.3 billion or an increase of 75 percent compared to that of the same period at the previous year at US$8.7 billion.

Meanwhile, in 2021 the trading value between Indonesia and India reached US$19.8 billion with a surplus of US$6.3 billion for Indonesia. Indonesia’s non-oil-gas exports to India in 2021 reached US$13.11 billion.