cooking oil prices: Consumers expected to get relief from high cooking oil prices as Indonesia lifts export ban on palm oil


Cooking oil prices are expected to cool gradually from June as Indonesia, the largest producer and exporter of palm oil, has announced to lift its export ban on May 23.

Supplies of sunflower oil from Ukraine are also expected to improve as the Russia-Ukraine war stabilises, said traders.

The lifting of the export ban will help increase availability of edible oil. Indonesia produces 46 million tonnes of palm oil a year. It consumes 9 million tonnes of this as food and another 9 million tonnes in its biodiesel programme, and exports the remaining 28 million tonnes.

“Market had come down by 5% after Indonesia announced on May 19 that it will lift the ban on export of palm oil. However, as it subsequently clarified that exporters will have to meet with domestic market obligations, prices again increased by 4% on May 20,” said Sandeep Bajoria, chief executive of edible oil importer Sunvin Group.

Indonesia has asked its cooking oil industry to reserve 10 million tonnes of palm oil for domestic consumption.


Traders said the availability of different types of cooking oils would improve in the coming months.

Indonesia’s palm oil production season begins now and peaks by September.

Meanwhile, the supply of sunflower oil is also improving.

India’s monthly consumption of sunflower oil before the outbreak of the Russia-Ukraine war was 200,000 tonnes, which declined by half as supplies from the Black Sea region came to a standstill.

“Now that the war is stabilising, sunflower oil supplies from Ukraine are gradually picking up by small barges, railways and by road. We expect India’s sunflower oil supplies to increase by another 20,000 tonnes to 25,000 tonnes per month,” said Bajoria.


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