(Sharecast News) - Palm oil producer MP Evans updated the market on the Indonesian government's temporary ban on the export of palm oil on Friday.
The AIM-traded firm said the ban on exporting both crude palm oil and refined products, which came into effect on Thursday, was intended to protect domestic supply.
It said local demand for palm oil was expected to increase "significantly" over the Lebaran festival period, celebrated over the next seven to 10 days.
"The Indonesian government last month introduced a revised export levy to subsidise local supplies as global supplies of vegetable oil have been limited," the MP Evans board said in its statement.
It noted that Indonesia is the world's largest producer of palm oil and a significant consumer, accounting for 59% of global supply and 22% of global consumption in 2021.
"Management continues to monitor the situation closely, and awaits clarity from the Indonesian government regarding the length of the export ban and extent of its impact on the domestic market.
"The company will provide further updates as appropriate."
At 0909 BST, shares in MP Evans were up 3.69% at 956p.
M P Evans (MPE)