JAKARTA (TheInsiderStories) - Indonesian Palm Oil Association (GAPKI) reported that palm oil products and derivatives export dropped by 18.47 percent to 2.86 million tones (MT) in January 2021 compared to previous month. In the same month, export values also decreased around 8 percent to US$2.59 billion from December 2020.
The executive director, Mukti Sardjono, said in a written statement on Wednesday (03/17), the largest decline in exports occurred in crude palm oil (CPO) products, which decreased by 54.6 percent from the previous month to 333,000 tones and oleochemical exports down 8.75 percent to 292,000 tones.
The processed CPO exports also decreased by 7.7 percent on monthly basis, from 2.27 million tones (MT) of CPO in December to 2.09 MT of CPO in January. The decline also occurred for crude palm kernel oil. Based on the export destination, export to China fell 28 percent, Malaysia decreased by 77 percent, India down 41 percent and to the Netherlands dropped by 81 percent from end of last year. While, exports to Myanmar increased by 51 percent in annual basis.
He rated if the COVID-19 vaccination program is success and world economic growth recover, coupled with the domestic use for fuel with a 30 percent bio energy the world demand will rise. However, he said, there are also other things could affect the palm oil prices, like an increase in soybean price.
Earlier, the coordinating minister for economic affairs, Airlangga Hartarto, was also optimistic that CPO prices will be higher than 2020. He said, there are several factors, like the rising demand for palm oil, the reopen global economy, the sustainability of biodiesel policies in Indonesia, and the increase demand by major trading partners. The CPO and derivative products also contributes to export values, around $20 billion per year.
Recently, the Indonesian Vegetable Oil Industry Association (GIMNI) projects that CPO production in 2021 will grow by around 3 percent to 48.4 MT of CPO from this year’ 47 MT of CPO, inline with the increasing of prices and the conducive climate. Crude Palm Kernel Oil production also will increase by about 4 percent from 4.6 MT of CPO to 4.8 MT of CPO in 2021.
Executive director of GIMNI, Sahat Sinaga, also believed that there will be an increases in domestic palm oil consumption by around 14 percent to 19.75 MT of CPO in 2021. Its projected that starting next year, the domestic consumption palm oil for food will be around 8.8 MT of CPO, for non-food items around 1.67 MT of CPO and for biodiesel around 9.2 MT of CPO. According to him, the increases in biodiesel consumption provided the B30 program was running.
Then, palm oil exports in 2021 will also increase by 11 percent to 36.7 MT of CPO due to an increase in downstream palm oil product exports by around 16.6 percent to 29.29 MT of CPO. In addition, the CPO exports will experienced a decline of around 8 percent to 7.4 MT of CPO.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
