Indonesia plans to cancel some permits for the export of palm oil to ensure the domestic supply of the product amid rising prices for cooking oils on the eve of Muslim holidays.
In particular, officials noted that palm oil exporters accumulated large quotas for oil supplies last year, which is why they have little incentive to supply the product to the domestic market.
Recall that Indonesia provides companies with export quotas for palm oil, known as the “Domestic Market Commitment” (DMO), according to which exporters can ship volumes of oil 6 times higher than sales volumes in the domestic market. It is also noted that at the end of January, exporters received permits to export from the country about 5.9 million tons of palm oil.
Indonesia’s Commerce Ministry said last month that palm oil companies had been ordered to increase domestic shipments of the product to 450,300 tonnes a month through April.
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