Bangladesh: Palm oil shortage to make processed foods costlier

Published 2022년 4월 30일

Tridge summary

Indonesia's ban on palm oil exports is causing concern among food producers globally, as the oil is a crucial ingredient in many food, bakery, and cosmetic products. The ban, effective from April 28, is expected to surge the production costs of various food items and spark a search for alternatives. Bangladesh, already grappling with an edible oil shortage since the Russia-Ukraine conflict, is particularly affected. Bangladesh's food producers are experiencing increased prices and challenges in sourcing raw materials, leading to concerns about the stability of the production system. The ban could also trigger a global supply crisis, given that Indonesia and Malaysia account for 86% of the world's palm oil production. The Bangladesh embassy in Malaysia has warned of a potential price hike of Malaysian palm oil, as production levels have dropped and prices have surged.

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

Original content

Food producers are facing a new challenge following Indonesia's ban on palm oil exports as the edible oil is required to produce various packaged food, bakery and cosmetics products. According to traders, the production cost of almost all food items will increase significantly if Indonesia does not withdraw its export ban. Besides, they are also worried about finding alternatives to palm oil. Syed Alamgir, managing director and chief executive officer of Akij Ventures Ltd- one of the leading food producers in the country, said, "Palm oil is one of the major raw materials in the food processing industry. Indonesia is the supplier of 80% oil. in Bangladesh at low prices. Now we have to import from Malaysia at a higher price. " "The price has gone up, but we are not yet in a quandary because of the presence of Malaysian palm oil," he said. However, the way the oil crisis is spiraling in the retail market, it will hit us if Indonesia does not lift the export ban soon, he added. ...

Source: TBS