News of relief for common man, due to this decision of Indonesia, now edible oil will be cheaper
Image Credit source: Business Recorder
In fact, according to the industry, due to the ban on exports, the storage facilities are completely filled and if the restrictions last for some time, then there may be a situation of closure of work in the industry.
News of relief for people struggling with inflation. In the coming time edible oils (Edible oil) prices can be seen softening. According to Reuters, Indonesia (Indonesia) from 23 May palm oil ,Palm Oil) has announced the removal of the export ban. On May 19 itself, Indonesian leaders demanded the President to lift the ban, after which its decision has been taken today. In fact, the industry had urged that due to the ban on exports, the palm oil storage facilities in the country have been completely filled and if the restrictions remain for some time, there may be a situation of closure of work in the industry, which can cause a lot of damage. Due to the ban on export of palm oil, there was an increase in the prices of edible oils. Now with the lifting of restrictions, once again the possibility of increasing supply may see a softening in prices.
The crisis of stoppage of work in front of the palm industry
The ban on exports also made the situation difficult for Indonesia’s palm oil industry. The Finance Minister of the country admitted that even though this decision may bring down the prices of palm oil in the country, it is possible to lose more than $ 400 million to the industry every month. At the same time, in a talk with Reuters, Indonesia’s industry said that if the restrictions are not lifted by the end of May, then the work in the industry may come to a standstill. At the same time, this decision has also affected the farmers. According to the report, the ban was imposed when palm fruit production was at its highest. However, due to the ban, only half of the total crop was used, causing a total loss of $ 115 million to the farmers. Indonesia, the world’s largest palm oil producer, banned the export of crude palm oil (CPO) from April 28 last month. Indonesia took this decision in view of the rise in the prices of edible oil in the country. However, this decision had a bad effect on many such countries of the world which are dependent on the import of edible oil. India is also included in this. There was already an increase in the prices of edible oils in India. After Indonesia’s decision, further pressure on the prices increased.
What will be the effect on India
With the lifting of export restrictions from Indonesia, oil prices in India may see a decrease. In fact, with the opening of exports, there will be a softening in the prices of palm oil, while the demand for oil, which is currently being used as an alternative to palm oil in India, will also soften due to the start of supply, due to which the prices of other edible oils can also come down. India imports about 13 million tonnes of edible oil every year, of which 63 per cent is palm oil. A large part of it comes from Indonesia, while the rest is bought from Malaysia and Thailand. To meet the shortfall in the supply of edible oil due to the stagnation of exports, the use of other edible oils as an alternative increased, which also put pressure on their prices. However, with the resumption of exports, the effect of this move can be seen on all oils.