Importers such as India Bangladesh and Pakistan are the world’s biggest vegetable oil importers, and prices rose in Pakistan and Bangladesh. Indonesia’s decision affects not only palm oil export oil customers have no inventories than normal in anticipation.
The move by the world’s biggest palm oil producer to ban exports from Thursday will increase prices of all major edible oils including palm oil, soy oil, sunflower oil, and rapeseed oil, industry watchers predict.
Palm Oil – used in everything from cakes and frying fats to cosmetics and cleaning products – accounts for nearly 60% of global vegetable oil shipments, and top producer Indonesia accounts for around a third of all vegetable oil exports.
It announced the export ban on April 22, until further notice, in a move to tackle rising domestic prices.
Meanwhile, the cooking oil national industry body–Solvent Extractor’s Association (SEA) of India has suggested immediate initiation of government (G2G) dialogue with Indonesia on the proposed palm oil export ban from April 28 by them as it would have adverse repercussions on India.
Indonesia, which is the world’s largest producer of palm oil and meets nearly 50 percent of the total palm oil requirement in India annually, had announced to ban exports.
