Source: Oleoscope (Russia)
On Thursday, the Indonesian palm oil producer association, GAPKI, announced that the country is projected to see a decrease of 6.9% in palm oil exports by 2025, equating to 27.5 million tons.
GAPKI indicated that this downturn will follow an 8.3% increase in 2024, when Indonesia’s exports of palm oil reached 29.54 million tons. According to association spokesperson Hadi Sugeng, export opportunities are expected to be hindered by a small rise in production alongside growing domestic consumption, as reported by Malaysia Today.
This year, the group estimates total palm oil production at 53.63 million tons, with around 48.98 million tons being crude palm oil – slightly above last year’s figures. In 2024, Indonesia’s crude palm oil production stood at 48.16 million tons, with ending stocks of 2.58 million tons.
The constraints on exports have resulted in increased palm oil prices in international markets, reducing its competitiveness against other vegetable oils and resulting in fewer purchases.
“Palm oil is no longer an inexpensive vegetable oil,” Hadi remarked. “It is frequently pricier than other oils, compelling importers, especially from India, to seek cheaper options.”
It was previously reported that India’s edible oil imports reached their lowest level in four years as of February, while palm oil exports fell to a 13-year low in January.