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Palm Oil Industries Got The Impact of Export Ban: CPO Stock - 7,2 Million Tons in May 2022

Palm Oil Industries Got The Impact of Export Ban: CPO Stock - 7,2 Million Tons in May 2022

InfoSAWIT, JAKARTA – Palm oil industries work in May 2022 was influenced by the export ban which took place on 28 April - 23 May 2022. Crude palm oil (CPO) and its derivative product export ban did impact to the exports and the production. In agronomy, the fresh fruit bunch (FFB) production increased but in the industrial production, CPO production decreased 18% lower than April 2022 production.

“Some companies started limiting the harvest and FFB purchase from the smallholders because the companies’ mills have limited storage tanks,” Executive Director of Indonesian Palm Oil Association (IPOA), Mukti Sardjono said, as in the official statement to InfoSAWIT, Friday (15/7/2022).

He also mentioned, May 2022 exports reached 678 thousand tons only or decreased 68% from April 2022 exports which reached 2.089 thousand tons. The biggest decreasing exports happened to CPO and CPO derivative products. Oleochemical export in May 2022 reached 318 thousand tons, or relatively the same with April 2022 (319 thousand tons). Compared to April 2022, the exports from Indonesia to China in May 2022 decreased 28%, to the United States of America did too 32%, to Philippine did too 52%, to Russia decreased 64%, to European Union did too 64%, to Singapore did too 67%, to India decreased 80%, to Pakistan decreased 90%, and to Bangladesh decreased 98%.

CPO at Cif Rotterdam in May 2022 was US$ 1.714/ton or got cheaper than it was in April which was US$ 1.719/ton. CPO tender in this country also got cheaper from US$ 1.144,7 in April to be US$ 936,0 in May 2022. “It made FFB produced by the smallholders get much cheaper,” he said.

Palm oil consumption in this country in May 2022 reached 1.610 thousand tons, or lower (-8%) than it in April 2022. For food consumption, it increased from 812 thousand tons in April to be 837 thousand tons in May (+3%), while for biodiesel consumption, it reached 590 thousand tons or 22% lower than it in April which reached 755 thousand tons.

“The decreasing exports increased the last stock, or from 6,1 million tons in April to be 7,2 million tons in May 2022,” Mukti said. (T2)