Indonesian palm oil exports are estimated to have risen 27 percent in September to 1.36 million tonnes from the same month a year ago, data from the Indonesian Palm Oil Producers' association (GAPKI) showed on Monday. September exports, however, dropped 16 percent from 1.62 million tonnes shipped in August, the data showed.
"The decline against August had been anticipated but September figure was still better than our expectation of around 1.25 million tonnes," Susanto, the head of the association's marketing division, told Reuters. GAPKI is the main industry association of Indonesian palm oil producers. August's stronger exports were attributed to shipments delays in July as exporters awaited for an export tax cut that took effect in August.
Indonesia cut the tax on palm oil exports to zero in August from 3 percent in July due to price falls. The export tax was kept at zero for September and October. The world's biggest palm oil producer exported about half of its palm oil products to India in September. Other major buyers are Europe and China. More than half of Indonesia's palm oil exports are in the form of crude palm oil, whereas rival Malaysia sells mostly higher-value, refined products.