Indonesia's CPO Exports Predicted To Reach 19 Million Tons

Jakarta, May 7 (Antara) - The Indonesian Palm Oil Council (DMSI) predicted the country`s exports of crude palm oil (CPO) will reach 19 million tons this year with production forecast to reach 28 million tons. Around 9.2 million tons of the production would be for domestic consumption, DMSI chairman Deron Bangung said here on Tuesday. The domestic consumption would include 5.7 million tons as foodstuff and 3.5 million tons for industrial feedstock, Derom added. "The main export destinations would be China, India and the European Union," he said on the sidelines of an International Conference and Exhibition on Palm Oil (ICE-PO) 2013 here. ICE-PO 2013 with theme "Palm Oil Industry for the Earth and Welfare" , opened on Tuesday by Agriculture Minister Suswono will last for three days. In the first quarter of 2013, the country`s CPO production totaled 5.2 million tons falling short of the target of 5.5 million tons, Derom said. The shortfall in production resulted in lower stocks at 2.4 million tons at the start of the year from a projection of 2.5 million tons. He attributed the shortfall in production to extreme climate with heavy downpour this year. Plant cycle and soil condition damaged by long use of inorganic fertilizer or chemicals also contributed to the production shortfall, he said. Suswono said one factor that causes failure to boost the country`s CPO production is low productivity of smallholders` plantations. Efforts to improve the productivity of farmers` oil palm plantations have not made much headway, he said. Most of the plants of smallholders` plantations have been too old and need replanting, he said. The government, therefore, offers help in replanting and fertilization and provided high yield seed variety , he said. The government has also encouraged development of the downstream sector of palm oil industry , he said. Indonesia is the world`s largest palm oil producers and CPO exporters.