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Palm oil exports expected to improve next year amid global economic recovery
One of the largest palm oil associations in Indonesia predicted that 36 million to 37 million tons of palm oil would be exported next year.
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Gapki secretary-general Togar Sitanggang said the association predicted that 36 million to 37 million tons of palm oil would be exported next year. (Shutterstock/mrfiza)
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ndonesia, the world’s top palm oil producer, may see gradual growth in palm oil exports next year driven by an anticipated global economic recovery, the Indonesian Palm Oil Association (Gapki) has said, as industry players expect to produce more of the commodity.
Gapki secretary-general Togar Sitanggang said the association predicted that 36 million to 37 million tons of palm oil would be exported next year.
The prediction is much higher than Gapki’s 2020 forecast of 24.92 million tons, an 18 percent year-on-year (yoy) decline from last year, as main export markets such as European Union, China and India are impacted by the ongoing pandemic.
“Our prediction is quite moderate. The beginning of the year might still mirror the current situation, and a slow upward trend in demand is expected to happen in the second half of next year,” said Togar during a virtual briefing with The Jakarta Post on Dec. 17. “Hopefully, palm oil demand will go back to normal and our exports can perform better in 2021.”
However, he said the increase depended on the global economic situation.
Indonesia exported 3 million tons of palm oil in October, a 9.5 percent increase from September, driven by a 30 percent increase in oleochemical exports, Gapki data shows. Exports to India and the US saw the greatest increases.
However, overall exports, including of crude palm oil (CPO) and refined palm oil products, from January to October of this year, fell by about 6 percent yoy to 27.1 million tons, according to Gapki data.
