Indonesia to allocate around one million tonnes of palm oil for export


A farmer harvests oil palm fruit at a plantation in Kuta Makmur, Aceh province on May 23. - AFP

JAKARTA, May 28 (Reuters): Indonesia will allocate about 1 million tonnes of palm oil for export, prioritising companies that have been registered for the government's bulk cooking oil programme, a senior trade ministry official has announced,

Indonesia, the world's biggest palm oil producer, allowed shipments to restart from May 23 after a three-week export ban designed to control cooking oil prices at home, but companies have been awaiting technical rules before resuming.

The government is requiring exporters to participate in its bulk cooking oil programme and has stated companies' compliance with a so-called Domestic Market Obligation (DMO) will be the basis to determine the volumes they are permitted to ship.

"At the moment, the government aims to allocate exports of around 1 million tonnes, hopefully producers who have their storage tanks full and have registered to the programme can immediately submit permit requests," Trade Ministry official Veri Anggriono said in a discussion with industry participants on Friday.

Shipments could hopefully start before the end of month if companies immediately request permits, he said.

It was unclear for what period of time the allocation is for.

Separately, an industry ministry official said companies who had distributed bulk cooking oil between March 16 and May 31 could choose to get subsidy funds from the palm oil fund agency, or get export permits.

Leading edible oil analyst Dorab Ministry on Thursday urged Indonesia to immediately resume palm oil exports, warning that a halt pending details of a domestic sales rule could spell economic "doom" for farmers. (Reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy; Editing by Martin Petty)

Article type: free
User access status:
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Indonesia , One Million , Tonnes , Palm Oil , Export

   

Next In Aseanplus News

Asean News Headlines at 9pm on Tuesday (June 28, 2022)
Rising issue again - 11,504 new Covid-19 cases in Singapore, more than double the infections a day ago
Mother's plea leads Indonesia lawmakers to consider legalising medical marijuana
Thailand's two deputy prime ministers test positive for Covid-19 after overseas trips
Russia's Lavrov to join G20 foreign ministers' meeting in Bali, Indonesia (update)
Philippines eases restrictions on foreign ownership in key sectors
Vietnam reports 769 new Covid-19 cases; total cases now above 10.74 million as of Tuesday (June 28)
Motor racing-Hamilton calls for action amid storm over racist Piquet comment
Rooftop farms in Hong Kong skyscrapers provide fruitful and nutritious hobby to stressed-out urbanites
Singapore: Seven-year-plus jail for woman who offered drugs to teenage daughter as bonding activity

Others Also Read