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JAKARTA， Aug. 9 (Xinhua) -- The stockpile of Indonesia's crude palm oil (CPO) has shrunk since the beginning of this year as El Nino hit the world's largest producer of the commodity.


The Indonesian Palm Oil Association or GAPKI reported that the country's CPO stockpile felt to 1.8 million tons at the position of June from 4.36 million tons at the beginning of this year， said Fadhil Hasan， executive director of the association disclosed here on Tuesday.


The director revealed that the country production had been steady for several months after El Nino struck the country last year.


He said that the production this year remains failure to meet expectation that it erodes the stockpiles.


"The stockpile is estimated to keep declining in coming months as the global demand is potential to rise amid rising domestic demand，" the director said at his office.


The government has boosted the implementation of clean energy use， including bio-diesel which spurs the hike of demand of the CPO， according to him.


"This leads the producers prefer comply with domestic demand to exporting the product overseas，" he added.


Therefore the country's exports of the commodity declined by 1 percent in June from May， said Hasan.


Last week， French parliament decided to abort the inclusion of progressive tax for Indonesia's CPO into the draft of the biodiversity law of the country， boosting the competitiveness of the Indonesia's exported product overseas， according to Indonesian Trade Minister Enggartiasto Lukita.


Indonesia has implemented an eco-friendly way of cultivation CPO plantation， countering the black campaign launched by the West.

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