Edible oil prices in India – already high – are likely to increase with Indonesia – the world’s biggest palm oil producer – set to ban exports from April 28 in the wake of a local shortage. Indonesia produces over half world’s supply of palm oil – used in everything from processed foods and cosmetics to biofuels – and accounts for over a third of all vegetable oil exports.
Indonesia president Joko Widodo said he wanted to ensure people in his country had food products after global food inflation soared to record highs on Russia’s invasion of Ukraine.
“I will monitor and evaluate the implementation of this policy so availability of cooking oil in the domestic market becomes abundant and affordable,” he said in a video message.
India and other developing countries, including Pakistan and Bangladesh, will likely be among those most badly hit.
“We are terribly shocked…” Atul Chaturvedi, president of Solvent Extractors’ Association of India, told Reuters, “We were not expecting a ban like this.”
Indonesia’s ban will mean India will lose about four million tons of palm oil every month, the Mint reported.
The impact isn’t limited to less wealthy nations. Bloomberg said some UK supermarkets were limiting cooking oil purchases and a bakers’ group in the US, which produces 85 per cent of its baked goods, is warning about empty shelves.
