Indonesia palm exports seen up as much as 9 pct in 2013 -industry

JAKARTA Mon Jan 7, 2013 11:45am IST

JAKARTA Jan 7 (Reuters) - Palm oil exports from Indonesia, the world's biggest producer of the edible oil, may rise by as much as 9 percent this year, a top industry association official said on Monday, as improving global economic conditions boosts demand.

Palm oil exports were little changed in 2012 at 16.5 million tonnes but this will rise to between 17 million-18 million tonnes in 2013, Fadhil Hasan, executive director at the Indonesian Palm Oil Association (GAPKI), told Reuters.

"After the first half, if there is an improvement in the global economy and a rise in (crude) oil ... maybe around 17 million-18 million tonnes," said Hasan.

Late last year, GAPKI forecast that Indonesia's palm oil production would rise 7 percent this year to 27 million tonnes.

Palm oil is used mainly as an ingredient in food such as biscuits and ice cream, or as biofuel. Indonesia and Malaysia account for about 90 percent of global production.

Demand for the edible oil eased last year due to the global economic slowdown, which has led to record-high inventories. Benchmark palm oil futures notched its worst annual performance since the financial crisis in 2008, losing more than one-fifth.

Hasan said that current palm oil inventory levels in Southeast Asia's largest economy were between 3 million-4 million tonnes versus typical levels of around 1.5 million tonnes.

He urged the government to scrap a two-year moratorium on forest clearing that is due to end in May.

Indonesia imposed the moratorium under a $1 billion climate deal with Norway aimed at reducing emissions from deforestation. The moratorium has curbed the expansion of palm plantations in the country and impacted the economy negatively, industry officials say.

"The moratorium to some extent, just gives a negative perception that our managing of the plantations is not good," Hasan added. (Reporting by Michael Taylor; Editing by Muralikumar Anantharaman)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared
BSE Sensex rises over 1 percent on reforms, election boost

BSE Sensex rises over 1 percent on reforms, election boost

The BSE Sensex and Nifty rose more than 1 percent on Monday to mark their biggest daily gain in more than one week after the government's energy reforms led to a rally in oil firms, while wins by Prime Minister Narendra Modi's party in two state elections raised expectations for additional reforms.  Full Article 

REUTERS SHOWCASE

Indian State Media

Indian State Media

Controlling the message: Modi chooses state media  Full Article 

ONGC Stake

ONGC Stake

Govt meeting bankers to discuss share sale in ONGC - source  Full Article 

Gold Curbs

Gold Curbs

Finance Ministry wants to reimpose curbs on gold imports - ET  Full Article 

World Stocks

World Stocks

Shares advance on strong data, earnings  Full Article 

IBM Chip Unit

IBM Chip Unit

IBM to pay Globalfoundries to take chip unit  Full Article 

Eyeing Reebok

Eyeing Reebok

Investor group aims to buy Reebok unit - WSJ  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage