Because of Corona, Palm Oil Export Demand to India Down 2 Million Tons

Exports of crude palm oil (CPO) to various countries experienced Corona virus-induced disruption (COVID-19). To India, for example, decreased demand by 2 million tons this year.

“We understand that market conditions, especially global markets, will definitely occur distractions. I heard yesterday that India will drop by 2 million (tons) this year,” said Chairman of the Indonesian Palm Oil Association (Gapki), Joko Supriyono in the INA Palm Oil teleconference, Wednesday (5/20/2020).

Joko hopes this pandemic can end in June. Moreover, there is a fresh breeze from India which is rumored to be opening a lockdown, so that exports can be re-run.

“If I finish this June, I will get news from India, June India will open (region) and start buying, start importing a lot. Hopefully if June is complete, global demand will slowly recover,” he hoped.

Even so, Joko saw an opportunity in the country that would increase absorption due to the presence of 30% biodiesel or B30.

“Domestic consumption has so far gone up especially since I heard that the government will push B30. This is good news for our palm oil industry to continue to survive going forward,” he said.

Despite the Corona virus pandemic, oil palm farmers continue to carry out their activities by implementing health protocols. That makes no farmers exposed to the virus.

“So far is fine, operations are proceeding normally and thank God the workers on the plantation so far no one has been infected. Until today I have not heard of any COVID-19 virus infection in the plantation. Hopefully we can maintain this by running consistently the protocol that we have created, “he added.