Indonesia has resumed its palm oil exports from May 23 after a three-week ban.
However, shipments are not likely to restart until details emerge on how much of the edible oil must be held back for domestic use, industry players said.
Indonesia, the world’s biggest palm oil producer, halted exports of crude palm oil and some derivative products on April 28, in an attempt to bring down soaring local prices of cooking oil.
The ban rattled global edible oil markets at a time of supply shortages due to the war in Ukraine.
Indonesian President Joko Widodo expressed confidence that bulk cooking oil was generally heading towards the target price of 14,000 rupiah (0.95 USD) per litre.
Indonesia’s Trade Ministry has issued rules stating that companies must obtain an export permit that would be granted only to those able to meet a so-called Domestic Market Obligation (DMO).
Indonesia plans to retain 10 million tonnes of cooking oil supplies at home under the DMO rules, Chief Economics Minister Airlangga Hartarto said./.
Source: Vietnam News Agency