Indonesia's Ministry of Commerce is planning to review domestic market obligation rules for the Palm oil, in order to potentially alter the prices of some and types of products sold to the local market, director Bambang Wisnubroto said on Monday.
Under the “domestic market obligation” (DMO), palm oil producers have to sell a portion of their production to the local market at a capped price. This is to obtain export licenses, so as to ensure the supply of affordable cooking oil to Indonesians.
Bambang did not provide further details, but said the ministry plans to issue a revision of that rule this week.
The Indonesian government sets export quotas at four times the amount of palm oil supplied locally under the DMO scheme, granting extra quotas to companies that sell in smaller sizes for domestic use rather than in bulk.
Source: Bernadette Christina Munthe | Notícias Agrícolas
