Negative Campaign Keep Pushing Palm Oil in First Quarter 2018

Palm Oil export in Indonesia including biodiesel and oleochemical within first quarter in 2018 had been decline aftermath a negative campaign on palm by foreign. Particularly, due to allegations of deforestation by EU, antidumping by US and import fees by India. In an explanation released by Gabungan Pengusaha Kelapa Sawit Indonesia (GAPKI), Thursday (24/5/2018), as it said palm oil export during first quarter of 2018 was 7,84 million tons or down to 2% compared to the first quarter on 2017 of 8,02 million tons. Particularly for crude palm oil and its derivatives (excluding olechemical and biodiesel) was down to 3% in first quarter on 2018, from 7,73 million tons in first quarter 2017 down to 7,5 million tons. At least, there are three main factors causing it. As far as we know, EU Parliament issued newly policy to prohibit palm-based biodiesel. Also, the US they did allegations on antidumping biodiesel. Even India, they raised import duties on vegetable oils, also China tightening control on vegetable oils import. When imports demand had been decline, palm oils production in Indonesia on first quarter in 2018 rise up to 24% from 8,4 million tons in first quarter in 2017 to 10,41 million tons. This significant production in first quarter in 2017, due to recovering from dryness in 2015. Other than that, the area of the plant that begins to produce had been rise up, with the result that the production can keep going. But, during March 2018, palm oils export (excluding biodiesel and oleochemical) recorded up at least 1% to 2,4 million tons, or rise up to 33,86 thousand tons compared to February 2018 that only 2,37 million tons. An export performance that relatively stagnant, was influenced by India government policy to raise an import duties on vegetable oils in beginning of March 2018, for CPO 44% from only 30%, refined palm oil 54% from 40%. The India government’s policy that rise an import duties on vegetable oils, caused Indonesian palm oils export to India down to 33,44 thousand tons, down around 8% on March 2018 compared to a month before, or from 442,09 thousand tons in February down to 408,65 thousand tons in March. Decreasing on Indonesia palm oils export in March 2018, compared to a month before had been affect on Bangladesh to 59%, Middle Eastern countries 30%, and Pakistan 0,5%. ***