Following a move by Indonesia’s government to ban crude palm oil from being exported from the country, 2 ships were caught trying to smuggle the product to India and the United Arab Emirates. There has been a palm oil shortage in Indonesia for the past month since the Russia-Ukraine crisis has impacted the supply of vegetable oil in the country, making palm oil more expensive.
The price of CPO in Indonesia spiked from US$0.96 – US$1.03 per litre, to US$1.52 per litre. Indonesian farmers have supported the CPO export ban, saying it’s necessary for supply and affordability of cooking oil in the domestic market. The Indonesian President has also weighed in saying that palm oil producers in Indonesia must first look after the local need before exporting.
But the ban is now threatening food prices across the globe, and placing extra pressure on already steep cooking oil prices…
