Indonesia bans palm oil exports – upward pressure on edible oil prices

Indonesia bans palm oil exports upward pressure on edible

The price of the world’s most widely used vegetable oil has risen sharply due to the war in Ukraine. Indonesia is the world’s largest producer and exporter of palm oil.

23.4. 17:58 • Updated April 24th. 16:54

Indonesia, the world’s largest exporter of palm oil, plans to ban palm oil exports from next Thursday.

Palm oil is the most produced, consumed and best-selling edible oil in the world. Indonesia is the largest producer of palm oil, accounting for more than half of the world’s oil supply.

The price of palm oil has risen sharply due to the war in Ukraine. Ukraine is a major producer of sunflower oil, and many food companies are trying to replace the shortage of sunflower oil with palm oil.

This has led to a rise in the price of cooking oil in Indonesia and a depletion of stocks. The shortage of cooking oil has even led to demonstrations that have threatened to overthrow the Indonesian government, says a German Deutsche Welle (switch to another service) -magazine.

President of Indonesia Joko Widodon according to which the export ban will remain in place until the edible oil market has stabilized and edible oil is normally available.

According to the U.S. Department of Agriculture, about 77 million tons of palm oil is expected to be produced this year.

Palm oil is used in edible oils, processed foods, cleaning products, cosmetics and biofuels, among others.

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