Crude Palm Oil Prices Fall Amid Weakening Indian Demand

Reference prices for crude palm oil (CPO) for the period 1-30 June 2026 have declined. The Ministry of Trade attributed the drop to reduced demand from major importers, including India. The reference CPO price for determining export duties and taxes for June 2026 was set at $1,029.51 per metric ton, a decrease of $20.07 (1.91%) from the previous period’s $1,049.58 per metric ton. ‘The June 2026 CPO reference price decreased compared to May 2026 due to lower demand from major importing countries such as India,’ said Tommy Andana, Director General of Foreign Trade at the Ministry of Trade, in a statement in Jakarta on Saturday, 30 June 2026, as reported by Antara. Under current Ministry of Finance regulations, the government has set the CPO export duty at $148 per metric ton and an export tax of 12.5% of the June 2026 reference price, amounting to $128.69 per metric ton. The June 2026 CPO export duty determination refers to Column 8 of Appendix C of Minister of Finance Regulation No. 38 of 2024 in conjunction with Regulation No. 68 of 2025. The June 2026 CPO export tax is based on Appendix A of Minister of Finance Regulation No. 69 of 2025 in conjunction with Regulation No. 9 of 2026. The CPO reference price was calculated using the average prices from 20 April to 19 May 2026: $920.80 per metric ton on the Indonesian CPO exchange, $1,138.22 on the Malaysian CPO exchange, and $1,429.40 at the Rotterdam port. Under Ministry of Trade Regulation No. 35 of 2025, if the average price difference among the three sources exceeds $40, the reference price is calculated using the median and closest sources. Thus, the reference price was derived from the Malaysian and Indonesian CPO exchanges. Based on this calculation, the CPO reference price was set at $1,029.51 per metric ton. Additionally, branded packaged refined, bleached, and deodorized (RBD) palm olein with a net weight of 25 kilograms or less will be subject to an export duty of $33 per metric ton. This determination is outlined in Minister of Trade Decision No. 1415 of 2026, listing branded RBD palm olein packages with a net weight of 25 kilograms or less.