Indonesia cuts crude palm oil export duty for November
Indonesia has reduced its November 2026 CPO export duty to $124/tonne from $178 in October, following a 6.1% decline in the reference price to $978.90/tonne. The combined export duty and levy fell 20% to $246.36/tonne, potentially improving Indonesian palm oil’s competitiveness in global markets.
Indonesia has reduced its export duty on crude palm oil (CPO) for November 2026 amid declining global prices. The country’s Ministry of Trade set the reference export price at $978.90/t, down from $1,042.15/t in October. This represents a 6.1% decrease in the reference price, resulting in a lower tax burden for exporters.
In November, the export duty on crude palm oil will fall to $124/t from $178/t in October. The additional export levy, calculated at 12.5% of the reference price, will decline to $122.36/t from $130.27/t. The combined export duty and levy will decrease to $246.36/t from $308.27/t in the previous month, a reduction of approximately 20%.
Lower export charges could improve the competitiveness of Indonesian crude palm oil in international markets. Reduced export costs may allow suppliers to offer lower prices and stimulate demand from major importing countries, particularly amid weakening global prices.
At the same time, cheaper Indonesian crude palm oil could intensify competition with other vegetable oils, particularly soybean and sunflower oil. A wider price advantage for palm oil may encourage buyers to shift part of their demand toward it, creating additional downward pressure on prices of competing vegetable oils.
Overall, the reduction in export duties and the reference price in November could support Indonesian crude palm oil shipments to international markets. However, future price movements will depend on global demand, production volumes and competition among major vegetable oil exporters.
To Read more about Edible Oil News continue reading Agriinsite.com
Source : Ukr Agro Consult
