Indonesia Bans Palm Oil Exports, Prices Rise Worldwide

Indonesia Bans Palm Oil Exports, Prices Rise Worldwide

Indonesia, the world’s largest producer of palm oil, has banned its export. In addition, the Indonesian government decided that all other types of cooking oil and its ingredients may no longer be exported.

 

It thus responds to shortages in the country.

These shortages arose as a result of the war in Ukraine. That country is a major supplier of sunflower oil, but deliveries stopped due to the war. As a result, many companies started looking for alternatives such as palm oil, which in turn caused shortages in Indonesia.

That country is not the only one that has taken measures to protect its own population against shortages and price increases. For example, Argentina recently increased the export tax on soybean oil for the same reasons.

The United Nations has called on countries to continue to facilitate trade. According to the organization, protective measures are just causing more shortages and higher prices.

Indonesia’s measure caused vegetable oil prices to rise. As a result, soybean oil, palm oil, rapeseed oil and rapeseed oil, among others, became more expensive on various exchanges around the world.

The export ban will affect April 28 and will last until the government believes the shortages have been resolved.

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