JAKARTA (TheInsiderStories) – The Indonesian Palm Oil Association (GAPKI) reported that exports of crude palm oil (CPO) and its derivatives until May 2020 period fell by 13.7 percent to 12.73 million tons of CPO from the same period of last year. The export values also dropped from US$1.64 billion to $ 1.47 billion during January to May 2020.
In May only, the exports decreased by 8.37 percent from 2.65 MT of CPO in April to 2.42 MT of CPO. By origin, the biggest declined in May was China, plunged by 21 percent to 87,700 MT of CPO. Then, European Union down 16.62 percent to 81,500 MT of CPO, Pakistan lowered by 23.4 percent to 47,000 MT of CPO, and to India degrades 9.2 percent to 38,600 MT of CPO.
According to the director executive of GAPKI, Mukti Sardjono said in an official statement released today (07/10), the productions of CPO and its derivatives fell by 14 percent to 19.00 MT of CPO, the domestic consumption fell 3.6 percent to 7.33 MT of CPO, and the export volume was 12.74 MT of CPO or down 13.7 percent compared to previous year.
“The decline in exports mainly occurred in refined palm oil which is generally caused by the difference in the price of palm oil with small soybean oil,” said the director executive.
He added, the decline in exports to China is likely due to an increase in crushing oilseed especially soybean oil. But, the decreased export to China, said Sardjono, has offset by an increase of exports to several countries, such as to Egypt, rose by 81 percent compared to the previous month, Ukraine jumped 99 percent, the Philippines lift 73 percent, Japan up 35 percent and Oman increased 85 percent.
Sardjono estimates, the domestic and export demands for vegetable oil from China, India, and other countries will begin to rise in line with the recovery of global economic activities. He continued, although May’ exports declined, the domestic consumption of CPO and its derivatives in the first five months of 2020 rose by 3.6 percent to 7.33 MT of CPO compared to last year.
“Indonesia’ economic activities have also begun to recover so that in the future demand for palm oil for food will also increase following the demand for oleochemicals and biodiesel,” Sardjono stated.
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