Written By John Mutiso 📝
According to industry officials, domestic edible oil prices are expected to rise by 10% to 15% in the short term after Indonesia, the world’s top producer and exporter of palm oil, placed a ban on its export on April 28.
Last Friday, Indonesian President Joko Widodo announced the suspension of all cooking oil and raw material exports from April 28 until further notice.
The decision comes in response to a significant shortage of edible oil and skyrocketing costs in the country.
Vegetable oil prices have already risen more than 50% in the past six months as factors from labor shortages in Malaysia to droughts in Argentina and Canada, the biggest exporters of soy oil and canola oil respectively, curtailed supplies.
Indonesia typically supplies nearly half of India’s total palm oil imports, while Pakistan and Bangladesh import nearly 80% of their palm oil from Indonesia.
“Nobody can compensate for the loss of Indonesian palm oil. Every country is going to suffer,” said Rasheed JanMohd, chairman of Pakistan Edible oil Refiners Association (PEORA).
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