Jakarta (VNA) - Indonesia has raised the palm oil export quota in a bid to cut soaring inventories of the edible oil and farmers faced an "emergency" due to tumbling prices, according to an Indonesian Trade Ministry official.

The world's top palm oil producer has been forced to overhaul its policies after a three-week export ban that ended on May 23 caused a massive build-up of domestic stocks and angered farmers by sending prices of palm fruit lower.

Since July 4, Indonesia has lifted the export quota to seven times the amount producers sell at home, compared with five times previously, senior official Veri Anggrijono said.

As of July 4, the ministry had issued export permits for a total of 2.4 million tonnes of palm oil products under its so-called domestic market obligation (DMO) scheme and its export acceleration programme, he said.

Based on the smaller DMO and the acceleration programme, Indonesian companies could export a total of 3.4 million tonnes. However, Veri did not provide an estimate of volumes expected under the new quota.

The objective is to speed up exports so storage would be freed up and the palm fruit of farmers can be absorbed, said Veri, adding there was no time limit on the latest export ratio.

In a bid to boost local demand, a senior minister said Indonesia may raise the mandatory content of palm oil in biodiesel to 35% or 40% from 30% currently./.