JAKARTA: Indonesia may increase its palm oil export tax for February to 25% from 20% in January, after a rally in international prices, industry sources familiar with the matter said on Friday, Jan 21.
The base export price for crude palm oil (CPO) is likely to be set at $1,194 a tonne in February, up from $1,112 per tonne in January, said one source in the industry ministry.
"It is not surprising -- they always revise up these taxes in order to control the outflow, so the domestic side can keep some for themselves," said one palm oil analyst.
"Whenever they hike up export taxes, you see prices moving up because it constrains supplies."
Market talk that Indonesia, the world's largest palm oil producer, would lift the export tax to a maximum level of 25% in February, has swirled in the industry for weeks.
The export tax is intended to ensure that domestic requirements are met in Southeast Asia's biggest economy, and to reduce volatility in domestic cooking oil prices.
An export tax for cocoa beans will be unchanged at 10% from January with the base export price likely to be set at $2,671 per tonne, sources added.'' - Reuters
The base export price for crude palm oil (CPO) is likely to be set at $1,194 a tonne in February, up from $1,112 per tonne in January, said one source in the industry ministry.
"It is not surprising -- they always revise up these taxes in order to control the outflow, so the domestic side can keep some for themselves," said one palm oil analyst.
"Whenever they hike up export taxes, you see prices moving up because it constrains supplies."
Market talk that Indonesia, the world's largest palm oil producer, would lift the export tax to a maximum level of 25% in February, has swirled in the industry for weeks.
The export tax is intended to ensure that domestic requirements are met in Southeast Asia's biggest economy, and to reduce volatility in domestic cooking oil prices.
An export tax for cocoa beans will be unchanged at 10% from January with the base export price likely to be set at $2,671 per tonne, sources added.'' - Reuters
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