Indonesia sets the weighted average price for palm oil - the reference rate - every month, to calculate export duty. The move is seen as a measure to ramp up shipments by the largest cultivator of palm oil.

Indonesia rolled out a new rule on Thursday that imposes a 7.5 percent levy on CPO exports to increase the commodity's global competitiveness amid declining demand relative to other vegetable oils.

Indonesia’s Finance Ministry issued new regulations to revise the palm oil export levies, in a bid to boost shipments of the tropical commodity from the world’s biggest grower.

Indonesia, one of the largest exporters of palm oil, plans to cut export duty on palm oil early next month to support its farmers amid drop in demand. The development will be a major relief for Indian importers particularly after the Government increased the customs duty on crude soyabean oil,