Indonesia to allocate around one million tons of palm oil for export
JAKARTA (May 27): Indonesia will allocate about one million tonnes of palm oil for export, prioritizing companies that have been registered for the government’s bulk cooking oil program, it said on Friday May 27, a senior Commerce Ministry official.
Indonesia, the world’s largest producer of palm oil, has allowed shipments to restart from May 23 after a three-week export ban aimed at controlling cooking oil prices in the country, but companies are waiting for technical rules before resuming.
The government requires exporters to participate in its bulk cooking oil program and has said companies’ compliance with a so-called internal market obligation (MDG) will be the basis for determining the volumes they are authorized to ship.
“At the moment, the government aims to allocate exports of around one million tonnes. Hopefully, producers with full storage tanks who have signed up for the scheme will be able to submit permit applications immediately,” Veri said. Anggriono, head of the Ministry of Commerce, during a discussion with the industry. attendees on Friday.
Shipments could hopefully begin before the end of the month if companies apply for permits immediately, he said.
The duration of the allowance was unclear.
Separately, an Industry Ministry official said companies that distributed cooking oil in bulk between March 16 and May 31 could choose to obtain grant funds from the fund agency. for palm oil or to obtain export permits.
On Thursday, leading edible oil analyst Dorab Ministry urged Indonesia to resume palm oil exports immediately, warning that a halt pending details of a domestic sales rule could mean a ” economic disaster for farmers.