Indonesia set to resume palm oil exports; will there be relief in prices of edible oils?

The recent news of Indonesia lifting the ban on the export of palm oil on Monday, 23 May 2022 comes as a relief to India and others.

FPJ Web DeskUpdated: Tuesday, May 24, 2022, 10:12 AM IST
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However, prices of edible oil may not come down immediately, until details emerge on new rules aimed at securing domestic supplies of the edible oil Reuters said./ Representative image | Photo credit: IANS

Indonesia’s ban on palm oil exports, imposed on April 28, was one of the biggest acts of crop protectionism since Russia’s invasion of Ukraine in February and it stymied exports of edible oils and worsened a global shortage.

The recent news of Indonesia lifting the ban on the export of palm oil on Monday, 23 May 2022 comes as a relief to India and others.

However, prices of edible oil may not come down immediately, until details emerge on new rules aimed at securing domestic supplies of the edible oil Reuters said.

Sougata Niyogi, CEO – Oil Palm, Godrej Agrovet Limited, “Indonesia lifting its palm oil export ban from Monday was predicted by many, but it has happened much earlier than expected. Mainly the growing pressure from farmers was adequate because their FFBs were not bought by millers. However, since the ultimate objective of bringing down the price to 14,000 rupiah was not achieved, they will bring some control to domestic cooking oil prices which is not clear yet. We are awaiting the announcement with detailed information to be published.”

The Southeast Asian country, the world's biggest palm oil producer, halted exports of palm oil from April 28 in an attempt to bring down soaring local prices of cooking oil, rattling global edible oil markets already struggling with sunflower oil supply shortages due to the war in Ukraine.

President Joko Widodo announced the ban from April 28 to help lower soaring domestic prices. Indonesia halted shipments of crude palm oil and some of its derivative products in a bid to control soaring prices of domestic cooking oil, Reuters said. Palm oil is used in edibles, cosmetics, toiletries and cleaning products.

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