Indonesia has cut the base export prices of palm oil products to bring them in line with international prices, the trade ministry said on Wednesday.
The new prices will be effective from November 10 to December 9. The trade ministry cut the crude palm oil base export price to $428 a tonne from $434, while refined, the bleached and deodorised (RBD) palm oil base export price was decreased to $439 a tonne from $456.
The base export prices of RBD palm olein, used as cooking oil, has also been cut to $449 a tonne from $466, while crude palm olein was decreased to $439 a tonne from $456. The ministry also cut palm kernel base export price to $75 a tonne from $82. Base prices are used to calculate the amount of tax paid by exporters.
Crude palm oil is subject to a 1.5- percent export tax, while other palm oil derivative products are subject to a 0.3 percent export tax. Palm kernel is subject to a 3 percent export tax. Indonesia is the world's second-biggest exporter and producer of palm oil after Malaysia. Indonesia has forecast palm oil output will likely rise to 16.35 million tonnes in 2007, from an estimated 15 million tonnes this year.
The country's palm oil exports are likely to grow to 12 million tonnes next year from an estimated 11.3 million tonnes this year. The trade ministry will keep coal base export price unchanged at $34.83 a tonne. The export tax for coal is 5 percent.
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