Palm oil analyst Mistry urges Indonesia to resume exports immediately
RBD Palm Oil
Indonesia
Published May 28, 2022
Tridge summary
KUALA LUMPUR (May 26): Leading edible oil analyst Dorab Ministry on Thursday (May 26) urged Indonesia to immediately resume exports of palm oil, warning that a halt in shipments pending details of a domestic sales rule could spell economic "doom" for farmers. Mistry, a director of Indian consumer goods company Godrej International, is a prominent figure in the palm oil industry and his market-moving outlooks are closely watched by traders.
Original content
In an open letter to the Indonesian government shared with some international media outlets, Mistry said the world's biggest palm oil producer and exporter is heading to a "calamitous situation" as inventories had already reached historical highs surpassing seven million tonnes. "If unrestricted exports do not start before the end of May, we foresee a situation where all storage tanks will be full and the industry will grind to a halt," he said, adding that Indonesian farmers would bear the brunt of this. Indonesia reopened exports of crude palm oil and its derivatives from May 23 after a three-week ban on shipments in a bid to curtail runaway cooking oil prices. But Indonesian President Joko Widodo, commonly known as Jokowi, reinstated a policy of mandatory local sales at a certain price level, and exporters have held back on shipments as they await details of the latest rules. Farmers in Indonesia were already burdened with higher levies and taxes of US$575 (about RM2,520) per ...
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