Nigeria unable to seize lucrative opportunity as Indonesia bans palm oil exports

Published Jul 2, 2022

Tridge summary

Indonesia's surprise export ban on palm oil has led to a surge in prices and a potential global food inflation crisis. This situation presents a significant opportunity for Nigeria, a country that once dominated the palm oil market, to increase its production and meet the demand. However, Nigeria is currently a net importer of palm oil and has struggled to revitalize its oil palm sector due to neglected funding and dependence on crude oil. Despite initiatives to boost domestic production, the country remains far behind Indonesia and Malaysia. The ban is expected to further worsen the global palm oil supply shortage and price instability.

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

Original content

Indonesia’s surprise ban on palm oil exports offers Nigeria a lucrative opportunity to plug the gap as international buyers scramble for alternatives, but Nigeria is just unable to seize the moment in a market it once dominated. Palm oil, the most produced, consumed and traded edible oil in the world followed by soybean oil, rapeseed oil and sunflower seed oil, rallied this week after Indonesia, the world’s biggest exporter, said on Friday it will ban all exports from April 28 to deal with rising domestic cost of edible oil. The unexpected announcement threatens to worsen global food inflation already aggravated by Russia’s invasion of Ukraine. Both countries produce most of the world’s sunflower oil. Indonesia stepped back a bit on Tuesday, announcing that it will exclude crude palm oil from the ban, while the shipment of refined palm oil called RBD palm olein will continue. In response to the latest news, palm oil futures for July delivery rose seven per cent to 6,799 ringgit ...

Source: Premiumtimesng