Palm Oil Most Wanted in China And India

April 1st, 2010 |

Global economic recovery helped spur the increase in demand for vegetable oil. Palm oil has become increasingly popular because of cheap price and supply of lots. National oil producers an opportunity to increase exports while pushing the government to overcome practices that interfere with the image of Indonesia in the international market.
We ask the government played a role so that the local palm oil producers and farmers can enjoy the international price fluctuations.
- Moses

This was conveyed by the Executive Director of the Indonesian Palm Oil Producers Association (GAPKI) Muhammad Fadhil Hasan, Wednesday (31/3/2010), in Jakarta, and Vice Chairman of the Indonesian Palm Oil Board (DMSI) Derom Bangun who was contacted in Medan.

India’s palm oil demand is expected to increase from 6.5 million tons in 2009 to 7.3 million tons this year. Similarly, China’s vegetable oil market analysts estimate the increase in welfare will trigger an increase in China’s palm oil imports at least 750,000 tons.

This condition makes Indonesia an opportunity to increase export volume of more wide open. This is supported by Malaysian palm oil production predicted to decline from 17.5 million tons in 2009 to 17.2 million tons due to replanting.

According to Oil World, the vegetable oil market research institute based in Germany, the world’s oil and fat consumption will reach 169 million tons in 2010. Palm oil plays 22.7 percent (45.9 million tonnes) and tallest growing of other vegetable oils during the last three years.

The increase in demand would have an impact on prices. However, palm oil prices moved down last week after the beginning of March fluctuated between 800 dollars and 850 dollars per ton in Rotterdam.

“This price makes palm oil tariffs out April to 4.5 percent. But if now, instead of domestic prices tend to fall because of the strengthening rupiah (U.S. dollar),” Derom said.

President Director of PT Anugerah Makmur Langkat Rajek Musa Shah who was contacted in Medan, express, domestic palm oil producers hope they can enjoy the international price rise as an exporter. During this time, palm oil producers who sell in the domestic market are often stressed out duties which affect the purchase of fresh fruit bunches of oil palm farmers.

“We ask the government played a role so that the local palm oil producers and farmers can enjoy the international price fluctuations,” said Moses.

Negative Campaign

Barbed accusations by Greenpeace, an international nongovernmental organization environment, palm oil production is not sustainable PT SMART Tbk, Derom, who is also Vice President of the Second Roundtable on Sustainable Palm Oil (RSPO) says it has not been there to receive complaints from the parties involved. RSPO has a complaints mechanism against practices that violate the principle of sustainability for the integrated solution.

“RSPO does not provide feedback because there are no complaints (from members of RSPO),” Derom said.

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