JAKARTA: Indonesia has revised its rules on its palm oil domestic market obligation (DMO) scheme, raising the price cap in a bid to improve supplies of cheap cooking oil, the trade ministry said.
Indonesia, the world's biggest palm-oil exporter, obliges producers to sell a portion of their output to the local market at a capped price in order to gain export permits.
Indonesia raised the price cap to 15,700 rupiah (US$1) from 14,000 rupiah per litre, and changed its DMO target to 250,000 metric tonnes per month from 300,000 metric tonnes.
The new rules did not mention any change to the export quotas, currently set at four times the volume of palm oil that companies supply locally under the scheme.
The trade ministry did not immediately respond to a request for comment on how the new rules would impact export quotas. – Reuters
