Indonesia’s palm oil exports ban will impact market: deputy minister

[superadmin]

PONTIAN – Indonesia’s move to ban exports of its palm oil starting Thursday next week is expected to have a massive impact on the global edible oils and fats market.

Plantation Industries and Commodities Deputy Minister II Datuk Seri Wee Jeck Seng said the move is expected to boost prices of palm oil and competing oils in the international market since Indonesia is a top producer and exporter of palm oil.

He said last year, Indonesia’s palm oil accounted for 59% and 56% of the world’s palm oil production and exports respectively, adding that Indonesian palm oil exports represented 30% of total global oils and fats exports.

“As such, this drastic step taken by Indonesia will definitely have a massive impact on other countries, especially major palm oil importers such as China, India and the European Union.

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Indonesia’s palm oil export ban heats up vegetable oil market

NEW YORK – Indonesia’s decision to suspend palm oil exports in the face of domestic shortages has pushed vegetable oil prices to new highs, further tightening a market already on edge due to the war in Ukraine and global warming.

The prices of palm, soybean, European rapeseed and even its Canadian GMO counterpart, canola oil, have reached historic highs following Indonesia’s announcement on Wednesday.

“We already had problems with soybeans in South America, with canola in Canada,” said Philippe Chalmin, an economics professor at Paris-Dauphine University in France, stating that both crops had been severely affected by extended droughts.

Then came devastation for the “sunflowers in Ukraine” due to Russia’s destructive invasion, he added.

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