Illustrative image (Source: AFP/Getty Images) Jakarta (VNA) - Indonesia is able to supply up to eight million tonnes of sustainable palm oil to the European market to meet demand in the region estimated to reach six million tonnes by 2020, said Secretary General of Indonesia Palm Oil Association (GAPKI), Togar Sitanggang.
Indonesia was able to meet demand of the European market upon condition that EU countries could accept Indonesian Sustainable Palm Oil certification (ISPO), a compulsory standard imposed by the Indonesian government, he said.
The EU is currently the second biggest palm oil market after India. Based on GAPKI data of 2016, the country's palm oil export to the EU reached 6.6 million tonnes.
The world's biggest palm oil market is India reaching 10.25 million tonnes while China is the third biggest at 5.15 million tonnes.
Indonesia remains the world's large palm oil producer with its production last year reaching 33.4 million tonnes, Sitanggang said.
Currently, the global palm oil market is worth at least 40 billion USD. However, deforestation is blamed on oil palm plantations.
The Government of Indonesia has imposed a moratorium of palm expansion for the past five years.
In the first half of this year, Indonesia shipped 2.7 million tonnes of palm oil to the EU, up 40 percent year on year.
The country has also signed an agreement with Russia-based ROSTEC Group on goods exchange, including palm oil. - VNA
VNA
