Indonesia's Palm Oil Exports Drop 11.4% in January 2022

Palm oil exports in January 2022 reached 2.17 million tons, a decrease of 11.4%. The Indonesian Palm Oil Producers Association (GAPKI) reported that palm oil exports in December 2021 reached 2.46 million tons.

GAPKI Executive Director Mukti Sardjono explained that the January export decline is a seasonal pattern, but is also attributed to very limited production and triggered by very high prices.

The largest export changes occurred for several countries, including a decrease of 149,000 tons to China, a decrease of 108,000 tons to Pakistan, and an increase of 97,000 tons to India.

Along with the decrease in exports, GAPKI noted that palm oil and palm kernel stocks at the end of January increased to 4.67 million tons, compared to 4.12 million tons at the beginning of January.

The Russia-Ukraine conflict has pushed oil prices above US$100/barrel, adding a burden to the Indonesian government and other countries.

In the vegetable oil market, GAPKI predicts a supply deficit in the first half of 2022, pushing up vegetable oil prices.

"Therefore, the government needs to wisely manage domestic use and palm oil exports to maintain the national trade balance. For farmers, increasing efficiency and production are two things that must be continuously pursued," wrote Mukti in a press release (March 11, 2020).

(Also Read: Indonesia the World's Largest Palm Oil Exporter in 2020)