Indonesia, the world's top palm oil producer, reduced its export tax on crude palm oil to 7.5 percent for January from 9 percent in December, an official at the Trade Ministry said on Wednesday. Indonesia has been under pressure from parts of the palm oil industry to change its export tax after rival producer Malaysia indicated it would cut its tax rate for January to zero to spur shipments and bring down record stocks.

The country also reduced the January export tax on RBD palm olein to 2 percent from 3 percent the previous month, while keeping the tax on cocoa beans exports unchanged at 5 percent, the official said.

Copyright Reuters, 2012