Indonesia wants to lift the export ban on palm oil, which is coveted worldwide, on Monday. The situation regarding the supply of domestic cooking oil has improved, President Joko Widodo explained on Thursday. The world’s largest exporter of palm oil has halted shipments since April 28 in an effort to curb rising prices for household cooking oil.
The decision to lift the export ban was also made because the government is committed to the well-being of the 17 million workers in the palm oil industry, the president said in a video statement. Palm oil accounts for more than a third of the global vegetable oil market, with Indonesia accounting for about 60 percent of the supply.
Increased pressure to release
“The average price of (loose) cooking oil was 19,800 rupiah per liter before the export ban in April,” Widodo said. “After the ban, it dropped to about 17,200 to 17,600 rupiah per liter.” Originally, the price was only to fall to 14,000 rupiah (about 0.90 euros) before it was decided to lift the export ban for palm oil.
However, pressure for an earlier easing had increased recently as farmers protested the lack of demand for their palm fruit.
chocolate, cosmetics and cleaning products
Palm oil is the world’s most produced, consumed and traded vegetable fat. The market share is around 40 percent. It is used in chocolates, cosmetics and cleaning products. The US Department of Agriculture estimates that a total of 77 million tons will be produced this year. So far, Indonesia has supplied 60 percent of global demand. Malaysia is number two with a market share of 25 percent.
The largest customers are India, China, Pakistan and Bangladesh. For the past two years, the coronavirus pandemic has impacted crops as labor migration in Southeast Asia’s plantations has been curtailed.
Situation aggravated by the war in Ukraine
Soaring prices for raw materials and energy and supply problems affect the confectionery industry in Germany, which is characterized by medium-sized companies. Palm oil prices rose 73.3 percent in April alone, industry association BDSI complained. The war in Ukraine is now exacerbating the situation. “These burdens, never before seen in this form, are affecting businesses across the board and increasingly to an extent that threatens their very existence.”
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
