On July 29th, the National Grain and Oil Information Center reported that China's annual import volume of palm oil is between 5 and 8 million tons, of which nearly 70% comes from Indonesia. Since 2017, due to aging oil palm trees and low replanting rates, the annual growth rate of palm oil production in Indonesia has significantly slowed down, from nearly 10% in the early 21st century to 3% in recent years.

In the case of limited production growth, if Indonesia implements the B40 policy, it will inevitably compress its palm oil export scale. It is expected that Indonesia's palm oil export volume will decrease by nearly 2 million tons by 2025, accounting for about 4% of the global palm oil export volume, which may slightly push up international palm oil prices and increase China's palm oil import costs.

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