Indonesia will lift its ban on exports of palm oil from next Monday (23), after the situation of domestic supplies of cooking oil improves, President Joko Widodo said on Thursday (19).
The world’s largest palm oil exporter halted shipments of crude palm oil (CPO) and some derived products on April 28 to try to curb rising domestic cooking oil prices.
The decision comes despite the fact that bulk cooking oil has not yet dropped to the target price of 14,000 rupees per litre, as the government considers the well-being of 17 million workers in the palm oil industry, the president said in a video statement.
Jokowi, as the president is known, said that the supply of cooking oil in bulk has now reached a level higher than what the domestic market needs.
“The average price of (bulk) cooking oil before the export ban in April was 19,800 rupees per litre and after the ban the average price dropped to around 17,200 to 17,600 rupees per litre,” he said.
Indonesia has proposed banning vegetable oil exports as a way of controlling domestic prices, but pressures to ease this have mounted as farmers protested that there was no demand for their palm fruit.
The ban has shaken global vegetable oil markets that were already struggling after the war in Ukraine removed a large part of the sunflower oil supply.
Palm oil accounts for more than a third of the world’s vegetable oil market, with Indonesia accounting for around 60% of the palm oil supply.
Source: CNN Brasil
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