Indonesia raises crude palm oil export tariffs hinh anh 1Illustrative image (Photo: Internet)
Hanoi (VNA) – Indonesia, the world’s largest palm oil producer, will begin raising export tariffs on crude palm oil (CPO) in order to support its Government’s compulsory bio-fuel programme.

Accordingly, the country applies progressive export levies of 55-255 USD for each CPO tonne depending on reference prices.

Indonesian Coordinating Deputy Economic Minister for Food and Agriculture Musdhalifah Machmud said the policy will be revised monthly to suit economic conditions.

The credit rating agency Fitch Ratings said on December 14 that the export levy increase will raise bio diesel consumption next year to offset subsidy burden.

According to the Indonesian Palm Oil Association, CPO export will annually decline by 18 percent this year to 24.92 million tonnes, mostly due to falling demand from the European Union, China and India./.