North Sumatra's Vegetable Oil Exports To India Soar

Medan, N Sumatra (Antara Bali) - North Sumatra's vegetable oil exports including crude palm oil to India soared by up to 54.13 percent in the first quarter this year.

"The value of exports of fat and animal/vegetable oils from North Sumatra to India reached US$88.035 million up 54.13 percent from the same period last year which was recorded at US$57.118 million," head of the province's Central Bureau of Statistics (BPS) office, Wine Kusdiatmono, said here on Sunday.

The hike of exports followed an increasing demand in January and February, she said. Although there was a quite big drop of revenue in March  or around 35.43 percent, totally the value of exports of the commodities rose in the first quarter.

"Unfortunately the hike in the value of foreign exchange earnings from the vegetable oil exports to India could not as yet increase the total revenue because until the first quarter exports of fat and animal/vegetable oils from North Sumatra declined by 26.70 percent," she said.

The US$1.027 billion revenue in the first quarter of 2014 dropped to US$752.274 million in the same period this year.    

President of the Solvent Extractors Association of India (SEA), Pravin S Lunkad, admitted here in March that India still relied much on palm oil from North Sumatra or even Indonesia.

Pravin and dozen other SEA members who are importers were in the Sumatran province to observe oil palm plantations and palm oil industry in the region and discussed business possibilities with local businessmen.

He believed India would remain and even be more reliant on palm oil from Indonesia as demand is increasing while the quality of Indonesian palm oil is improving.

The chairman of the Indonesia Palm Oil Council (DMSI), Derom Bangun, said although demand was up in general Indonesia CPO sales to various countries have been depressed.

The condition happened because of the impact of global crisis including the policies issued by India and China to protect their vegetable oil production. (WDY)