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Indonesia Palm Oil export 2021 – Indonesia Export Trade Data

by Amit Singh Import Globals
Indonesia is the global largest producer and exporter of palm oil. According to Indonesia Export Data, the value of palm oil exports in the year 2020 amounted to around 18.45 million US dollars.  The bulk of Indonesia’s palm oil was made up of crude palm oil and refined palm oil with crude palm oil exports reaching around 28.2 million metric tons in 2019.

Palm oil production in Indonesia concentrated on two of its five major islands – Borneo and Sumatra. The production of palm oil is land-intensive and much of Indonesia’s rainforest had been cleared to make way for plantations. The Indonesia custom data showed that the country shipped palm oil most to China. Its top 10 palm oil exporter countries accounted for 94% of the overall value of shipments.

The main export market for Indonesian crude palm oil was India, which made up more than 60% of the total crude palm oil exports in 2018.  India was the world’s largest importer of palm oil. But, the higher import duties imposed on palm oil lead to a decline in demand from India. But despite this, Indonesian palm oil exports were battered by an increase in the demand from China that sought alternative vegetable oil supplies due to restrictions caused by a trade war with the US.

As per the Indonesia Import Data, the country is expected to produce 44.5 million mt of palm oil in 2021-22 up from 43.5 million mt in 2020-2021. The palm oil production reached 3.5 million mt in April up to 10.8% from March. The country is the world’s largest palm oil producer and exporter accounting for 54% of the global supply.

Indonesia imposed new palm oil export levies from July 2021. The change in levy structure for palm oil exports, cutting the ceiling rate for crude palm oil levies from $ 255 to $ 175 per ton. This move has been welcomed by most market participants who were expecting it.

Indonesia crude palm oil has lost out on market share to Malaysian crude palm oil due to price competitiveness. This move of cutting the ceiling rate for crude palm oil levies will help Indonesian crude palm oil exports.

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About Amit Singh Advanced   Import Globals

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Joined APSense since, August 25th, 2021, From Indore, India.

Created on Sep 27th 2021 11:24. Viewed 388 times.

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