World’s largest palm oil producer Indonesia bans edible oil exports amid shortage
Indonesia, the world’s largest producer of palm oil, on April 22 announced an export ban amid a continuing cooking oil crisis in the country. President Joko Widodo said that he decided to ban exports of cooking oil and its raw material palm oil indefinitely starting from April 28.
He added that the policy would be “monitored and evaluated” until Indonesia has an “abundant and affordable supply” of cooking oil.
Cooking oil is one of the major products sourced from palm oil. It is widely used in local dishes in Indonesia but prices have soared since late last year and grown further amid global supply disruptions of edible oils due to Russia’s invasion of Ukraine.
Price for cooking oil doubled in recent months
The supply problems have resulted in the scarcity of cooking oil on Indonesian store shelves earlier this year. While that condition has improved in recent weeks, the prices remain high, roughly double the amount several months ago, fueling inflation concerns amid the current Islamic fasting month of Ramadan.
The local shortage of the edible oil has roiled the country, leading to street protests over high food prices. The government has rolled out cash subsidies and deployed police surveillance to safeguard nationwide supply in order to rein in prices and ensure ample supply. Indonesia’s police have been deployed for a 24-hour surveillance of cooking oil production and distribution as the rising food prices became a key political issue in the country.
Indonesia, the world's largest producer of palm oil, on April 22 announced an export ban amid a continuing cooking oil crisis in the country. President Joko Widodo said that he decided to ban exports of cooking oil and its raw material palm oil indefinitely starting from April 28. He added that the policy would be “monitored and evaluated” until Indonesia has an “abundant and affordable supply" of cooking oil. Cooking oil is one of the major products sourced from palm oil. It is widely used in local dishes in Indonesia but prices have soared since late last year and grown...
Indonesia, the world’s largest producer of palm oil, on April 22 announced an export ban amid a continuing cooking oil crisis in the country. President Joko Widodo said that he decided to ban exports of cooking oil and its raw material palm oil indefinitely starting from April 28.
He added that the policy would be “monitored and evaluated” until Indonesia has an “abundant and affordable supply” of cooking oil.
Cooking oil is one of the major products sourced from palm oil. It is widely used in local dishes in Indonesia but prices have soared since late last year and grown further amid global supply disruptions of edible oils due to Russia’s invasion of Ukraine.
Price for cooking oil doubled in recent months
The supply problems have resulted in the scarcity of cooking oil on Indonesian store shelves earlier this year. While that condition has improved in recent weeks, the prices remain high, roughly double the amount several months ago, fueling inflation concerns amid the current Islamic fasting month of Ramadan.
The local shortage of the edible oil has roiled the country, leading to street protests over high food prices. The government has rolled out cash subsidies and deployed police surveillance to safeguard nationwide supply in order to rein in prices and ensure ample supply. Indonesia’s police have been deployed for a 24-hour surveillance of cooking oil production and distribution as the rising food prices became a key political issue in the country.
