HS Code:
Palm nuts and kernels (HS Code: 1207.10) are the seeds of the oil palm tree, primarily used for the extraction of palm oil and palm kernel oil. These products are critical in the food industry, cosmetics, and biofuel production. Palm nuts and kernels are predominantly cultivated in tropical regions, with significant production centered in Southeast Asia and West Africa. The trade of palm nuts and kernels is a vital component of the global agricultural market, driven by demand for sustainable and versatile vegetable oils.
Total Trade Volume
Approximately $1.2 billion USD
Data from 2022
Source
United Nations Comtrade Database
$450 million USD
37.5% of total trade of total trade
Increasing
$380 million USD
31.7% of total trade of total trade
Stable
$90 million USD
7.5% of total trade of total trade
Increasing
$70 million USD
5.8% of total trade of total trade
Stable
$50 million USD
4.2% of total trade of total trade
Increasing
Average Rate
5.2% ad valorem
Highest Rate
15% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like ASEAN or EU preferential tariffs)
Rising demand for sustainable palm oil
Increased focus on certified sustainable palm nuts and kernels has led to higher production costs but also opened premium markets in Europe and North America.
2021-2023
Growth in biofuel applications
Palm kernel oil's use in biodiesel production has boosted demand, particularly in the EU, driving trade volumes upward.
2020-2022
Fluctuating global prices due to weather conditions
Erratic weather patterns in key producing regions have caused supply shortages, leading to price volatility in the global market.
2022
The European Union introduced new regulations requiring proof that palm products are not linked to deforestation, affecting exporters from Indonesia and Malaysia.
June 2023
Potential reduction in EU market access for non-compliant producers, pushing for faster adoption of sustainable practices.
Indonesia temporarily banned palm oil exports in early 2022 to secure domestic supply, but lifted the ban after global supply concerns.
May 2022
Stabilized global supply chains, though short-term price spikes affected importers.
Nigeria introduced policies to reduce raw palm kernel exports and boost local processing capacity through incentives and export tariffs.
January 2023
Reduced export volumes of raw kernels, with potential long-term benefits for value-added products.