Key Points
- Indonesia is to allow permits to export palm oil after the halt.
- The government allowed the export of palm oil after a three-week halt.
- The authorities implore firms to reserve a portion of their palm oil stocks for local consumption.
The world’s largest palm oil producer, Indonesia, plans to grant permits for the export of palm oil. The government officials decided to lift the ban against the export of palm oil. Indonesia considered some permit requests last Monday (May 30).
Indonesia received the first set of requests for export permits a week after the lift of the ban. The government will soon analyze and resume the shipments after the prolonged delay. Due to the long curb, companies involved in the palm oil market face hurdles in regulation. Hence, the companies also face difficulties in getting the shipments out.
“As of this morning there were five to six companies that had submitted a request and the system would immediately process them. We hope the permits can be issued today,” Stated Veri Anggriono, a senior trade ministry official.
While granting permits for the export of palm oil, Indonesia implores companies to reserve a portion of the palm oil produced. The reserved portion will sustain domestic use, locally. The government also requires the companies to join a bulk cooking oil program. The program has been developed to regulate domestic supplies and monitor runaway inflation of prices.
The plan is to ship 1 million tonnes of palm oil over a certain period of time. However, this export shipment value accounts to half of what it used to be before the ban. The total amount of palm oil companies can export will depend on their production capacity and the local demand for cooking oil. Albeit the light curbs, the permits will make a significant change in the current global palm oil supply.
Reference,
https://www.channelnewsasia.com/asia
