InfoSAWIT, JAKARTA - The latest report from the Indonesian Palm Oil Entrepreneurs Association (GAPKI) reveals that palm oil exports in October 2024 recorded a significant increase to several destination countries. This increase was observed in India, the European Union (EU), Africa, Pakistan, the Middle East, Bangladesh, and Malaysia. However, exports to China and the United States (USA) experienced a decline.
Exports to India saw the largest surge, rising from 242 thousand tons in September to 719 thousand tons in October. Meanwhile, exports to the European Union increased from 230 thousand tons to 294 thousand tons. Exports to Pakistan grew from 174 thousand tons to 237 thousand tons, the Middle East from 112 thousand tons to 171 thousand tons, Bangladesh from 35 thousand tons to 111 thousand tons, and Malaysia from 73 thousand tons to 91 thousand tons. Conversely, exports to China fell from 487 thousand tons in September to 437 thousand tons in October, while exports to the USA dropped from 231 thousand tons to 158 thousand tons.
On a year-on-year (YoY) basis until September, exports to China in 2024 were recorded to be 33.3% lower than in 2023. Declines were also noted in exports to India (10.7%), Bangladesh (26.7%), and Malaysia (34.3%). However, exports to the Middle East increased by 18.2%, and Pakistan rose by 1.3%. Overall, national palm oil exports in 2024 for the January to October period were recorded to be 10.0% lower than the same period in 2023.
In terms of value, palm oil exports in October 2024 reached USD 2.943 million, up 34.82% compared to the export value in September, which was USD 2.183 million. Nevertheless, on a YoY basis until September, the export value in 2024 was still 12.2% lower, totaling USD 22.472 million compared to USD 25.584 million in the same period in 2023.
GAPKI's Executive Director, Mukti Sardjono, explained that although there was an increase in exports in October, the year-on-year decline reflects the global market challenges faced by the Indonesian palm oil industry. "This indicates the need for more adaptive strategies to address the dynamics of international demand and markets," he stated in an official statement received by InfoSAWIT on Thursday (December 26, 2024).
The increase in exports in October provides optimism for market recovery, especially in countries like India and the European Union. However, the decline in exports to China and the USA remains a primary concern for industry players to ensure market sustainability in the future. (T2)