Indonesia continues to restrict palm oil exports, how will this affect prices?
RBD Palm Oil
Indonesia
Published Feb 17, 2023
Original content
Restrictions on palm oil exports from Indonesia will help support vegetable oil prices. Indonesia's government is continuing a policy of restricting exports to ensure sufficient supply of vegetable oil during the Ramadan and Eid al-Adha holidays, and increasing the supply of cooking oil by 50%, which officials say will lower domestic prices. We will remind that after the complete ban on exports in April 2022, world prices for palm oil increased by 60%. In January 2023, the Indonesian government tightened palm oil export restrictions, reducing the domestic market obligation (DMO) ratio from 1:8 to 1:6. This means that for every metric ton of palm oil sold domestically, exporters will only be allowed to export 6 tons of palm oil instead of 8 tons. New restrictions on the export of palm oil from Indonesia will lead, according to analysts, to a decrease in supplies to the world market by approximately 800 thousand tons in the first quarter of 2023. Between February 6 and May 1, 2023, ...
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