Edible oil prices may go further up as Indonesia bans palm oil export
Edible oil prices have gone up in the domestic market of Indonesia, too. The scarcity of palm oil is being felt there, too. So, the government of Indonesia is banning its export for the time being. Given this situation, the edible oil industry of India has requested the government to resolve the issue.
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There is bad news for every kitchen. At a time when the edible oil prices in the country are already at a record high, fears have arisen that the prices may go further up. In fact, Indonesia is set to ban edible oil exports for the time being. Indonesia is a major importer of edible oils and large quantities of palm oil are imported from Indonesia. The import of sunflower oil from Ukraine is already in a crisis due to the Ukraine–Russia war. Troubles may mount up further when the import of edible oils stops from Indonesia.
In fact, edible oil prices have gone up in the domestic market of Indonesia, too. The scarcity of palm oil is being felt there, too. So, the government of Indonesia is banning its export for the time being. Given this situation, the edible oil industry of India has requested the government to resolve the issue.
Earlier in February, Indonesia had increased the minimum limit for its local producers for the sale of edible oils in its domestic market from 20 per cent to 30 per cent. Edible oils had started getting scarce in the global market ever since. One fears that the situation may get very serious once the complete ban on export comes into effect. Indonesia and Malaysia are the largest suppliers of palm oil, especially for India. India imports edible oils from Argentina and Brazil also.
India is the largest importer of edible oils. About 250 lakh tonnes of edible oils is consumed in the country every year. Of this, the supply of 112 lakh tonnes comes from domestic production. The rest of the demand is fulfilled through imports. About 60 per cent of the edible oils India imports is palm oil. Given this scenario, one may well understand the extent of the scarcity of palm oil that may be caused by the Indonesian government’s decision.
The edible oil imports of India consist of about 25 per cent of soyabean oil and about 12 per cent of sunflower oil. India has mostly been importing sunflower oil from Ukraine and Russia only. But its supply from these countries has been disrupted due to the war.
