Informist, Friday, Jul. 25, 2025

MUMBAI – Crude palm oil production in Indonesia in May fell 7% to 4.2 million tonnes from 4.48 million tonnes the previous month and palm kernel oil output fell to 396,000 from 425,000 tonnes, according to a release by Indonesian Palm Oil Association. As of May, the combined production of the two reached 22.6 million tonnes or around 2.08% higher than the production in 2024, it said.

Domestic consumption, too, declined to 2.03 million tonnes in May from 2.10 million toones the pervious month. In May, comsumption of crude palm oil fell to 803,000 for food, a decline of 7.81% from the previous month, and for biodiesel consumption dropped 0.7% to 1.05 million tonnes. On the other hand, consumption of the oil for oleochemical rose 2.19% to 187,000 tonnes, according to the release.

Total exports of palm oil products in May rose a whopping 49.75% to 2.66 million tonnes. The largest export increase was seen in the processed palm oil, which was nearly 2 million tonnes in May, up 58.5% from April, the release said. Crude palm oil exports in May were at 164,000 tonnes, up nearly 24% from the previous month, and export of oleochemical increased nearly 19% to 437,000 in May, it said.

Exports to India were the highest in May at 230,000 tonnes, followed by Africa at 197,000 tonnes, the European Union at 117,000 tonnes, and then China at 88,000 tonnes, the release sad. Indonesia exported 32,000 tonnes of palm oil products to the US, 54,000 tonnes to Bangladesh and 50,000 tonnes to Pakistan, it said. The destination that saw exports drop in May from April was Russia at 27,000 tonnes, it said.

The export value of palm oil products in May increased to $2.82 billion in May, up 36.4% from $2.06 billion in April. The export value increased to $13.64 billion during Jan-May, up nearly 36% from the corresonding period last year. "The increase of export value was caused by the average price of palm oil products during Jan-May 2025, which was $1,186 per tonne Cif Rotterdam (Cost, Insurance, and Freight at the port of Rotterdam), which was higher than the average price during Jan-May 2024 at $997 per tonne Cif Rotterdam," according to the press release.

With the initial stock in May at 3.05 million tonnes, production of crude palm oil and palm kernel oil rose to 4.56 million tonnes, local consumption dropped to 2.03 million tonnes and export rose to 2.66 million tonnes, final stock by the end of May dropped to 2.92 million tonnes. End

US$1 = INR 86.50

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Taniva Singha Roy

Edited by Avishek Dutta

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