Indonesia will Ban Palm Oil Exports to reduce Domestic Prices

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Indonesia will Ban Palm Oil Exports to reduce Domestic Prices
24 Apr 2022
6 min read

News Synopsis

After the announcement made by the President of Indonesia, Joko Widodo on Friday the country will effectively restrict the exports of palm oil from April 28, until further notice. This decision was taken in order to control the skycoketing domestic prices of Palm Oil. This decision could further provoke global food inflation that has already increased to a record high level after Russia's invasion of Ukraine, increase costs for packaged food producers and compel governments to choose between using vegetable oils in food or for biofuel. The Indonesian President told that this measure is aimed to make sure that there is enough availability of food products at home in the world's top palm oil producer and exporters.

Joko Widodo said,"I will monitor and evaluate the implementation of this policy so availability of cooking oil in the domestic market becomes abundant and affordable.” On the Chicago Board of Trade Soybean oil prices hiked 4.5% to a record high of 83.21 cents per pound. After the announcement made by the President of Indonesia, the President of trade body the Solvent Extractors Association of India (SEA), Atul Chaturvedi, informed Reuters that the move will hurt consumers not only in the biggest buyer India but globally, as the palm is the world's most consumed oil.

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