Indonesian palm oil exports increase significantly in May

18-Jun-2025 03:28 PM

Jakarta. Indonesia, the world's largest producer and exporter of palm oil, is promoting the export of refined grade palm oil and palmolein over crude palm oil (CPO). After a significant decline in palm oil exports in April 2025, a sharp rebound was observed in May.

According to private cargo surveyor company Intertek Testing Services (ITS), shipments of all palm oil products from Indonesia increased notably during the month.

Intertek data shows that in May 2025, Indonesia’s CPO exports surged from 47 thousand tonnes to 2 lakh tonnes. Exports of RBD palmolein jumped from 5.45 lakh tonnes to 8.18 lakh tonnes, and refined palm oil shipments increased from 2.74 lakh tonnes to 3.60 lakh tonnes. Other palm oil product exports also showed growth.

During the same period, Indonesia’s palm oil exports to India rose by 141 percent—from 2.43 lakh tonnes to 5.87 lakh tonnes.

Exports to China grew by 15 percent—from 2.72 lakh tonnes to 3.12 lakh tonnes—while exports to the European Union increased by 14 percent—from 2.65 lakh tonnes to 3.01 lakh tonnes.

India's palm oil imports between January and April 2025 were notably low, as international prices of palm oil were higher than soybean oil. Both oils compete in the global market, and typically, palm oil is priced $100–$150 per tonne lower than soybean oil.

However, during this period, palm oil was priced $100–$150 per tonne higher, leading Indian refiners to prioritize crude soybean oil over crude palm oil.

As surplus stocks of palm oil began accumulating in Malaysia and Indonesia, prices came under pressure and eventually fell below soybean oil prices.

During the 2023–24 marketing season (November–October), India imported an average of 7.50 lakh tonnes of palm oil per month. In contrast, the average monthly import during the first half of the 2024–25 season dropped to less than 5 lakh tonnes.