Indonesia suspends all palm oil exports, markets in turmoil

This is due to an insufficient global supply linked to the conflict between Ukraine and Russia (main suppliers of sunflower oil) and the drought in Latin America, the main focus of soybean oil production.

The measure aims to deal with the shortage and soaring prices of cooking oil derived from palm oil, which has been going on for several months on the domestic market with manufacturers' preference for export markets in a context of rising oilseed prices.

Although the deadline for the application of this suspension has not been specified, the authorities indicate that the resumption of shipments will be effective when wholesale prices per liter of cooking oil reach 14,000 rupees ($0.96) compared to nearly of 24,000 rupees ($1.65) in recent weeks.

This ban comes after the application by the executive from January 27, of an obligation for exporters to deliver 20% of their cargoes of oilseed products on the domestic market in order to pull prices down.

We can cite in particular Egypt where 90% of all consumption of around 1.2 million tonnes of palm oil annually is satisfied through purchases from Indonesia..

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