Palm Oil Prices To Shoot Up: The prices of edible oil have already been on fire and in the coming days it may rise further. In fact, from April 28, Indonesia has decided to ban the export of palm oil. Due to which the price of palm oil is expected to rise sharply. Indonesia is one of the largest producers of palm oil, while India is one of the largest importers of the world’s largest edible oil – especially palm oil and soya oil.
This decision of Indonesia has increased India’s concern. India is already troubled by the interruption of sunflower oil supply due to Russia-Ukraine war, now this decision of Indonesia has increased the trouble. At the same time, the retail inflation rate is at 6.95 percent in the month of March i.e. close to 7 percent. One of the major reasons for the increase in inflation is also a big increase in the prices of edible oil. According to the retail inflation data, the prices of edible oils and fats have increased by 27.4 percent during the financial year 2021-22. At the same time, if experts are to be believed, due to the ban on Indonesian palm oil exports, prices may increase by 10 to 15 percent.
India imports about one million tonnes of edible oil in a month and imports decreased to 1.3 million tonnes from 1.5 million tonnes in 2021-22 last year, yet due to jump in prices, imports of edible oil in 2021-22 1.4 lakh crores had to be spent whereas in the previous year Rs 82,123 crores had to be spent.
This decision of Indonesian is expected to increase inflation. Palm oil is the most widely consumed cooking oil in the world, accounting for 40 percent of global consumption. Next comes the turn of soy oil, which accounts for 32 per cent, and then mustard (or canola), which accounts for 15 per cent.