DMO Quota Raised to Ensure Raw Material Availability
Disrupted distribution has been blamed for hoarding of cooking oil and illegal exports or smuggling of CPO/olein.
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People queue to buy cooking oil during a cooking oil and vegetable operation at the Katulampa Sub-District Office, East Bogor, Bogor City, West Java, Wednesday (9/3/2022).
JAKARTA, KOMPAS — The Trade Ministry has increased exporters’ crude palm oil (CPO) and olein supply quota for the domestic market, or the domestic market obligation (DMO), from 20 percent to 30 percent. The step was taken to secure the supply of raw materials and ensure the availability of cooking oil in the country.
Trade Minister Muhammad Lutfi said on Wednesday the policy would take effect as of Thursday (10/3/2022), until global CPO prices returned to normal or attained a new equilibrium. The ministry was coordinating with the National Police to crack down on cooking oil speculators and hoarders as well as CPO smugglers.