Indonesia’s Feb crude palm oil fell after India import duty hike – Reuters survey
Indonesia’s crude palm oil (CPO) exports in February are forecast to have declined from the previous month, a Reuters survey showed, as India’s import duty hike reduced demand for the vegetable oil.
Exports are forecast to drop to 2.48 million in February,down 9.5 percent from 2.74 million tonnes in January, according to the median of three responses in a survey of two industry groups and a state palm oil research firm.
Output from the world’s largest CPO producer in February is forecast to fall 2.7 percent to 3.49 million tonnes from 3.59 million tonnes, the survey showed.
Survey respondents said the decision by India, a major consumer, to hike the import duty on the edible oil took a toll on exports.
“Due to high import duty in India, exports to India were seen declining…in February,” Sahat Sinaga, chairman at Indonesia’s Vegetable Oil Association, told Reuters by phone.
“We hope March exports won’t be lower than 2.4 million tonnes.”
Earlier this month, India raised import taxes on crude and refined palm oil to the highest in a decade, prompting buyers to cancel up to 100,000 tonnes of cargoes.
Domestic use of the oil was expected to climb to 997,000 tonnes, compared with 924,000 tonnes in January, according to the Reuters survey.
The Indonesia Palm Oil Association (GAPKI) said Indonesia exported 2.74 million tonnes of palm oil and palm kernel oil in January.
It also said Indonesia’s stocks of palm oil at the end of January stood at 3.62 million tonnes.
A median figure in the Reuters survey showed a February stockpile of 3.53 million tonnes versus 3.7 million tonnes in January.
Below is a table of the median forecasts in the Reuters survey for CPO output, exports and stockpiles, as well as the GAPKI palm and palm kernel oil export data, going back to the beginning of 2017. Figures are in million tonnes.