MINISTRY OF AGRICULTURE ASSESSES ALTERNATIVE EXPORT MARKETS FOR PLANTATIONS, HERE'S HOW PALM OIL ISSUERS RESPOND
07 April 2020
The Ministry of Agriculture (MOA) announced that it is reviewing alternative export market destinations for plantation commodities to cope with the decline in demand from China due to the coronavirus or Covid-19 pandemic.
Now, palm oil is included in the priority of export development is expected to feel the fresh air. This also received a positive response from a number of palm oil producers.
On the other hand, the alternative export market launched by the Ministry of Agriculture will not affect PT Mahkota Group Tbk (MGRO) because the export market carried out by MGRO through its subsidiaries is still relatively small.
MGRO Corporate Secretary Elvi explained, Mahkota Group's export sales are currently only penetrating several countries on the African continent. “As for now, the company's largest market share is still domestic so it does not affect the option,” he said.
Elvi emphasized that although the subsidiary has begun to slowly cram business abroad, so far the domestic market is still running.