2008 palm oil output up sharply: Report
Indonesia's palm oil output in 2008 is likely to rise by 2.0 million tons from 2007 to 19.33 million, increasing the country's exports and stocks, Hamburg-based oilseeds analyst Oil World forecast on Tuesday, Reuters reported.
Indonesian palm oil exports are likely to rise to 14.55 million tons in 2008, up from 12.65 million tons in 2007, it estimates.
Indonesia's palm oil exports apparently slowed down in July/September due to the country's high export taxes, resulting in a loss of market share to Malaysia, it said.
"With elimination of export taxes with effect from November 1, Indonesian exporters are now regaining market share," it said.
Despite high exports, Oil World estimates Indonesia's palm oil stocks will rise to 1.95 million tons at the end of December, up from 1.54 million tons at the end of 2007.
"Palm oil prices were recently under pressure from record inventories in Indonesia and Malaysia, which result from a huge production increase and sluggish demand, partly due to defaults," it said.
Meanwhile, the government will not step in to mediate in a dispute between Indonesian and Indian palm oil companies over the latter's contract defaults on palm oil shipments, Achmad Manggabarani, Director General of Plantations at the Agriculture Ministry said Tuesday, Dow Jones reported.
"It's a business to business issue and it's not within our purview to exact sanctions on companies. We hope the companies will be able to settle the issue among themselves," said Manggabarani.
The government's hands-off approach is in line with India's stand. On Friday, an Indian government official said companies should resolve the issue amicably, without the need for government intervention.
Indonesian palm oil companies have drawn up a blacklist of 30 Indian companies which they said have defaulted on palm oil import contracts.
The blacklist involves Indonesian palm oil companies ceasing to ship palm oil to those companies and will remain in force until the companies honor their contractual obligations, Indonesia's Association of Palm Oil Producers said last Friday.
Indonesian palm oil exports are likely to rise to 14.55 million tons in 2008, up from 12.65 million tons in 2007, it estimates.
Indonesia's palm oil exports apparently slowed down in July/September due to the country's high export taxes, resulting in a loss of market share to Malaysia, it said.
"With elimination of export taxes with effect from November 1, Indonesian exporters are now regaining market share," it said.
Despite high exports, Oil World estimates Indonesia's palm oil stocks will rise to 1.95 million tons at the end of December, up from 1.54 million tons at the end of 2007.
"Palm oil prices were recently under pressure from record inventories in Indonesia and Malaysia, which result from a huge production increase and sluggish demand, partly due to defaults," it said.
Meanwhile, the government will not step in to mediate in a dispute between Indonesian and Indian palm oil companies over the latter's contract defaults on palm oil shipments, Achmad Manggabarani, Director General of Plantations at the Agriculture Ministry said Tuesday, Dow Jones reported.
"It's a business to business issue and it's not within our purview to exact sanctions on companies. We hope the companies will be able to settle the issue among themselves," said Manggabarani.
The government's hands-off approach is in line with India's stand. On Friday, an Indian government official said companies should resolve the issue amicably, without the need for government intervention.
Indonesian palm oil companies have drawn up a blacklist of 30 Indian companies which they said have defaulted on palm oil import contracts.
The blacklist involves Indonesian palm oil companies ceasing to ship palm oil to those companies and will remain in force until the companies honor their contractual obligations, Indonesia's Association of Palm Oil Producers said last Friday.