Malaysian crude palm oil exports becomes more competitive

Analyst James Fry said during a virtual industry conference: "This is going to change the whole balance of exports between Malaysia and Indonesia." Fry is chairman of commodities consultancy LMC International and his comments are closely watched by the industry

KUALA LUMPUR: Indonesia, the world's biggest palm oil producer, will increase its refined palm oil exports after raising taxes, leaving Malaysia to become more competitive in crude palm oil (CPO) exports, a leading industry analyst said on Monday.

The reordering of palm oil trading follows Indonesia's decision last month to raise the export levy to a progressive system of US$55 to $255 per tonne of CPO, depending on price levels to generate funds for its palm-based biodiesel programme.