Indonesia tightens palm oil export curbs in new hit to global supplies

The tighter restrictions aim to ensure that cooking oil prices at home remain affordable to consumers, said Indonesian trade minister Muhammad Lufti. - Reuters

JAKARTA (Reuters): Indonesia will further restrict exports of palm oil from Thursday (March 10) to increase domestic supplies, as authorities ramp up efforts to contain a surge in cooking oil prices, Trade Minister Muhammad Lutfi said.

The world's biggest producer and exporter of palm oil will require companies to sell 30% of their planned exports of crude palm oil and olein at home, up from 20% currently, under a scheme known as Domestic Market Obligation (DMO). The new restriction will stay in place for at least six months.