iGrain India - In September 2024, Indonesia experienced a significant 22% drop in palm oil exports, according to data from the Indonesian Palm Oil Producers Association (Gapki). While palm oil production increased slightly by 1%, rising from 4.376 million tonnes in August to 4.415 million tonnes in September,
the steep decline in exports, from 2.384 million tonnes in August to 1.860 million tonnes, led to a sharp accumulation of surplus stock. The outstanding stock surged by 23.3%, reaching 3.021 million tonnes by the end of the month.
The decline in exports was particularly noticeable in key markets like India and China, which together account for a large portion of Indonesia's palm oil exports.
The reduced demand from these countries, combined with Indonesia’s peak production season continuing through November and December, has put increased pressure on palm oil prices.
Domestic consumption of palm oil remains high in Indonesia due to its widespread use in food and biodiesel production.
India, for example, imported 4.83 million tonnes of palm oil from Indonesia between November 2023 and October 2024, including large quantities of crude palm oil (CPO) and RBD palmolein.
The drop in exports, especially in such major markets, is a noteworthy development for the global palm oil trade.