Indonesia widens palm oil export ban, adds to existing pressure on edible oils

Published 2022년 4월 28일

Tridge summary

Indonesia, the world's largest edible oils exporter, is expanding an export ban to include crude palm oil, RBD palm oil, and used cooking oil, causing global supply concerns and potentially worsening food inflation. The ban, starting April 28, is in response to domestic cooking oil price surges. This could impact various supply chains, highlighting the need for farmers in major oilseed regions like North America to produce bumper crops. The situation is further complicated by Russia's invasion of Ukraine, which has already disrupted palm oil and other commodity supplies. The conflict has driven palm oil prices to record highs, threatening to deepen a food-cost crisis, especially affecting the poor. Meanwhile, supermarkets in several countries have imposed purchase limits on vegetable oil due to concerns about shortages, leading to panic-buying and empty shelves.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Bloomberg writers Eko Listiyorini, Anuradha Raghu, and Rieka Rahadiana reported yesterday that, “Indonesia, the world’s biggest edible oils shipper, will widen an export ban to include crude palm oil, adding to uncertainty in a market that’s suffered dizzying price swings and threatening to worsen global food inflation. “The ban will be expanded to crude palm oil, RBD palm oil and used cooking oil, Coordinating Minister for Economic Affairs Airlangga Hartarto said at a briefing Wednesday. A day earlier, he said the halt would only apply to palm olein. The policy will start on April 28 and last until domestic cooking oil prices ease. “Indonesia’s export policy has sent the palm oil industry into a tailspin. Prices have been whipsawed, rising one moment as the lack of details from the initial statement had traders fearing that the ban would cover all products, then slumping the next as details emerged that the move would be restricted to certain refined goods. Futures rallied 10% ...

Source: Agfax