For instance, CPO price on January 18 reached Rp14,805 per kilogram, which is the highest recorded until mid-January 2022Medan, N Sumatra (ANTARA) - Crude palm oil (CPO) price is expected to remain high till March 2022 due to strong demand in the global market, according to the Indonesian Palm Oil Producers Association (Gapki).
"For instance, CPO price on January 18 reached Rp14,805 per kilogram, which is the highest recorded until mid-January 2022," executive secretary of the Indonesian Palm Oil Producers Association (Gapki), North Sumatra chapter, Darma Suicipto, said on Tuesday.
CPO price averaged Rp11,753 per kilogram in 2021, with the highest price of Rp14,893 per kilogram recorded on November 3, 2021, he noted.
The CPO price hike was fueled by high demand in the domestic and international markets, he said.
Domestic demand for CPO increased due to the biodiesel B30 program, he explained. Meanwhile, demand for CPO rose in the overseas markets tracking the development of downstream industries in various countries, he added.
"CPO price is getting stronger amid concerns over limited CPO supplies from CPO producing countries, particularly Indonesia. Because of the anxiety, importers bought much CPO so the price increased," Suicipto said.
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"Consumer demand, which is faster than supply, has pushed the prices," he added.
He also predicted that foreign demand for CPO will increase following India's plans to lower CPO import duties and Indonesia's plans to introduce biodiesel B40.
Sucipto said the price hike since 2020 has been a historical momentum for CPO trade.
Normally, any price hike lasts for five–six months at the latest, he added.
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Translator: Evalisa Siregar, Suharto
Editor: Rahmad Nasution
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