Edible oil to become costlier; Indonesia bans palm oil export

edible oil to be expensive after indonesia ban export

New Delhi: After the Corona pandemic-induced slowdown, the Russia-Ukraine War has started affecting the economy of the whole world. Countries with weak economies are going through bad times. The effect can be seen on the reeling economies and their inflation. Food prices are touching the sky now is the turn of Edible oils after Indonesia, the world's largest palm oil exporter, has announced the ban on the export of palm oil. So the analyst believes that the prices of edible oils in the country are set to rise in the coming days.

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The situation worsened by the Russo-Ukraine war

Indonesia is the largest producer of PALM OIL. But, these days he himself is facing the crisis of edible oils. The price of one liter of edible oil in Indonesia has reached Rs 22000. In fact, Ukraine and Russia are considered to be the largest producers of SUNFLOWER and SOYABEAN OIL. Its contribution to the international market is close to 80%. But after the war that started on 24 February, due to the ongoing conflict between the two countries, the supply of edible oils from both the countries has been stopped. Hence, due to the shutdown of supply of SUNFLOWER and SOYABEAN oil from Russia and Ukraine, the importers turned their attitude towards PALM OIL, as PALM OILis also used by many people as a SUBSTITUTE. Due to increasing demand, now PALM OILalso started selling gold prices.

PALM OILreaches Rs 22,000 per liter in Indonesia

After Sri Lanka, now Indonesia's economy has started faltering. Here too inflation has reached the seventh sky. The situation is that the PALM OILof which Indonesia is the largest producer has reached Rs 22,000 per liter in Indonesia. In fact, due to the stoppage of the supply of refined, soya and SUNFLOWER OIL due to the war between Russia and Ukraine, Indonesia started exporting more PALM OIL than necessary, due to which there has been a shortage of PALM OILin Indonesia itself. PALM OILis being compared with gold in Indonesia, as the price of 1 liter of refined PALM OILreached 22,000 in March this year. Now the effect of the skyrocketing price of PALM OILin Indonesia is being seen all over the world. Therefore, its direct impact is also being seen on India, because Indonesia exports the most CPO (CRUDE PALM OIL) to other countries.

Soya oil prices jumped due to the news of the export ban

US soy oil futures jumped more than 3 percent to a record high of 84.03 cents a pound with the Indonesian government announcing a ban on PALM OILexports. Actually, this move of Indonesia was completely unexpected. The move will hurt not only the biggest buyer in India, but also consumers globally, as palm is the world's most consumed oil. At present, India imports around 9 million tonnes of PALM OIL. Of this, 70 percent palm oil comes from Indonesia, while 30 percent comes from Malaysia.

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