The price of Indonesian palm oil over the past week fell 0,99% to Rp 7.010 from Rp 7.080 in the previous week.
The position of palm oil on the international market is threatened after the draft of the European Comission, “Delegated Regulation Supplementing the Directive of the EU Renewable Energy Directive II”, stated that palm oil is classified as unsustainable and high risk commodities, so the EU commission plans to stop using palm oil in 2023, and increased to a ban in 2030.
The Indonesian government together with Malaysia and Colombia as the world's leading palm oil producers bravely opposed the policy, and promise to seek the issue of the discrimination against palm oil to the World Trade Organization (WTO).
On the other hand, the price of Malaysian palm oil up 4,74%, according to Sociate Generale de Surveillance (SGS) that released exports data of Malaysian palm oil products from March 1 – 20, 2019 which rose by 0,8% to 925,4 thousand tons from 918 thousand tons on February 1 – 20, 2019. This positive news gave optimism to the market players, so that Malaysian palm oil prices lifted over the past week.
Indonesia – India Plans to Meet
This week, 26th March, Indonesia and India is scheduled to have meeting in Medan to talk about the CPO. For information, India is one of Indonesia’s main CPO export counterparty, as around 34.8% of Indonesia – India commodity trade is CPO. Any deals that secure trade relationship on CPO may prevent the CPO prices move lower, while the RED II from European Union still become the dilemma for Indonesia and other producers country.