August 2021 Palm Oil Export Volume Increased by 55.8% Due to Energy Crises in India and China

The Indonesian Palm Oil Association (GAPKI) reported that Indonesia's palm oil exports reached 4.27 million tons in August 2021. This figure represents a 55.8% increase from the previous month's 2.74 million tons.

Meanwhile, the value of Indonesian palm oil exports reached US$4.42 billion in August 2021, a 56.73% increase from July's US$2.82 billion.

The increase in Indonesian palm oil exports was driven by a rise in the average price of crude palm oil (CPO). The average CPO price in August 2021 reached US$1,328/ton, up from US$1,226/ton in July.

Furthermore, GAPKI also reported an increase in exports, particularly to several major export destinations for palm oil products. This surge in palm oil exports was also attributed to the energy crisis in India and China.

Exports to India rose to 958,500 tons from 231,200 tons in July 2021. This was due to a reduction in India's import tax from 15% to 10% for palm oil and other vegetable oils, effective from June 30, 2021, to September 30, 2021. Similarly, exports to China in August 2021 increased to 819,200 tons from 297,000 tons in July 2021.

The palm oil products exported in August 2021 included crude palm oil (CPO) at 541,000 tons, processed CPO at 3.15 million tons, crude palm kernel oil (CPKO) at 28,000 tons, processed CPKO at 162,000 tons, biodiesel at 48,000 tons, and oleochemicals at 340,000 tons.