Asian palm oil buyers seek stable export policies from producers

Published 2023년 3월 7일

Tridge summary

The Asian Palm Oil Alliance, a group of palm oil buyers, is urging producing countries to stabilize their export policies following last year's changes, which led to volatility in the palm oil market. The alliance, which includes members from India, Pakistan, Bangladesh, Nepal, and Sri Lanka, wants to expand its member base. The unpredictable export policies, such as Indonesia's export ban, have disrupted supply chains and increased costs for buyers. Major producers like Indonesia and Malaysia are allegedly prioritizing demands from European buyers over Asian ones, despite Asia being the largest buyer of palm oil. The Alliance is calling on producers to consider the needs of Asian buyers and to avoid imposing duties on crude palm oil that make refining uneconomical.

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Original content

KUALA LUMPUR (March 7): The Asian Palm Oil Alliance (APOP), a body of palm oil buyers, want producing countries to make sure they have stable export policies after changes last year caused volatility in the trading of the tropical oil, the head of the group said. India, Pakistan, Bangladesh, Nepal and Sri Lanka are currently members of the APOP and the alliance wants to add more buyers, Atul Chaturvedi, the APOP chairman, said at the annual meeting of member countries in Kuala Lumpur late on Monday (March 6). Importing countries have built refineries to process crude palm oil, but producers are imposing higher export duties on crude palm oil than for refined and making the buying of refined palm oil cheaper than the crude grade, Chaturvedi said. "The higher duty on crude palm oil is keeping refineries idle in importing countries. Producers need to think about this duty structure, which is hurting buyers," he said. Dorab Mistry, a director of Indian consumer goods company Godrej ...

Source: Theedgemarkets