PALMOILMAGAZINE, JAKARTA – During the coordination meeting held at Badan Pangan Nasional on Monday (24/7/2023), it was revealed that the realization of palm cooking oil domestic market obligation (DMO) for July 2023 is projected to be only around 60% of the DMO target.
As of 23 July 2023, the actual realization of palm cooking oil DMO had reached 145.532 tons, accounting for approximately 48.51% of the total DMO. The Ministry of Trade, as reported by Palmoilmagazine.com, estimated that the final realization of DMO in July 2023 might reach approximately 60% to 70% of the DMO target, equivalent to around 200,000 tons.
The reason why DMO does not realize the targets – 300.000 tons could be because of the high export rights of the producers and the sluggish of CPO and its derivative exports.
Meanwhile DMO realization of Minyakita by 23 July 2023 reached 41.509 tons or 28,52% of total DMO that reached 145.532 tons. It means DMO realization in July could be about 30% – 40% of DMO target or about 70.000 tons.
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Just like DMO realization of palm cooking oil for the people, the reason why DMO realization of Minyakita could be because the producers did not need packaged incentive multiplier factors because of the high export rights.
Ministry of Trade still evaluates the implementation of palm cooking oil for people – DMO. At least, there are four points, such as, the first, DMO supply in total is less than the target to fulfill. “Monthly average still reached 80% of the targets to fulfill. In May 2023 the realization just reached 189 thousand tons or 63% only,” Ministry of Trade noted.
The second, not every producer ran DMO obligation. The third, palm cooking oil distribution was not equal. The fourth, Minyakita distribution was less distributed than bulk palm cooking oil. “In average, Minyakta was distributed less than 100 thousand tons in every month from the target 40% of total DMO or equal to 120 thousand tons,” the evaluation notes from Ministry of Trade. (T2)
