JAKARTA, INDOtayang.COM– The increase in the price of CPO or Crude Palm Oil (crude palm oil) which moved in trading last Monday (4/10/2021). The high demand from India is the main trigger for the increase in CPO prices so that it is profitable for Indonesia.
The price of Crude Palm Oil on the Bursa Malaysia was recorded at MYR 4,531/ton. Up 0.58% from last weekend’s position. Crude palm oil prices are still undergoing a bullish trend.
In the past week, prices rose 3.12% on a point-to-point basis. Over the past month, the gain was 4.52%.
The increase in demand makes the price of crude palm oil rise. Citing Reuters, India’s CPO imports in September 2021 reached 1.4 million tons.
When compared with the same period the previous year, it doubled and became a record high at the same time.
“The government’s policy of lowering import duties has led to a surge in imports,” said Sandeep Bajoria, CEO of Sunvin Group.
Indian government lowers import duties
Late last June, the government of Prime Minister Narendra Modi decided to reduce the import duty on crude palm oil from 10% to 2.5%.
This is a way to reduce the price of CPO processed products so that they do not erode the purchasing power of the people of Bollywood.
Towards the end of the year, household consumption in India reaches its peak. Due to the celebration of major holidays such as Diwali and Dhanteras.
Therefore, lowering the import duty on CPO will reduce the price of its processed products (cooking oil, butter, bath soap, etc.) That way, households have a strong purchasing power.
Usually India relies on soybean oil as a substitute for CPO. However, this year the weather is not friendly, heavy rains have hampered the soybean harvest.
The increase in Crude Palm Oil prices will have a positive impact on Indonesia. This is because Indonesia is the world’s largest producer and exporter of CPO.
When the price of crude palm oil rises, let alone high demand, then Indonesia will enjoy extraordinary results.(One)