Indonesia to cut palm oil exports by 4% in 2024 - GAPKI

RBD Palm Oil

Indonesia

Market & Price Trends

Published Jan 17, 2024

Tridge summary

Indonesia plans to reduce palm oil exports by 4% to almost 29 million tons, possibly due to a decrease in exports to EU countries following a new law banning products produced through deforestation and child labor. Meanwhile, Nigeria aims to increase palm oil production with a new strategy. The US Department of Agriculture has also reduced its forecast for global palm oil production, attributing the decrease to Indonesia's output reduction, despite which Indonesia and Malaysia are projected to dominate the world market.

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Original content

This year, the Republic of Indonesia, one of the world's largest producers of palm oil, plans to reduce supplies of the product abroad by four percent or to almost 29 million tons. Nasdaq reports this with reference to the forecast of the national industry association GAPKI. The reason for the decline in exports is not specified. Presumably, it is associated with a decrease in exports to the EU countries, which were previously the largest market for this country. As we have said many times, this is due to a new EU law banning the supply of goods that are produced through deforestation and child labor. Palm oil is one of these types of products. Nigeria to increase palm oil production through new strategy The head of GAPKI also provided a forecast for palm production for the specified period. According to him, it should grow by no more than five percent from the same period last year. However, he did not announce exact figures, as well as data for last year. Such estimates may be ...

Source: Rosng