Indonesia Raises Palm Oil Price Cap in Domestic Supply Scheme

PALM OIL - JAKARTA. Indonesia on Monday said it has revised rules for its palm oil industry, raising the price ceiling for produce sold under the domestic market obligation (DMO) scheme to encourage producers to improve the supply of cheap cooking oil.

Under the DMO scheme, producers must sell some of their output locally at a capped price to gain export permits. However, supply under the DMO scheme has fallen in tandem with weak demand from overseas which has seen a decline in permit requests.