On facing shortage of domestic supplies of cooking oil and soaring prices, Indonesia has imposed a complete ban on palm oil exports on Thursday.
The ban has led to a huge crisis in the world as the country is the world’s largest producer of the commodity, said media reports.
It may also lead to the destabilisation of global vegetable oil market, where the prices are already hitting peak.
The ban has also brought bad news for India, which is the world’s biggest importer of palm oil.
India relies on Indonesia for nearly half of the 700,000 tonnes of this oil it imports every month.
At least 290,000 tonnes of the edible oil, which was going to be shipped to India, has got trapped at ports and oil mills in Indonesia, a Reuters report said citing industry officials on Thursday.
“Our vessel of 16,000 tonnes is stuck at Kumai port in Indonesia. We don’t know when Indonesia will lift the ban, and stuck shipments will be delivered,” Pradeep Chowdhry, managing director, Gemini Edibles & Fats India Pvt Ltd told.
The company buys around 30,000 tonnes of palm oil every month from Indonesia.
Sandeep Bajoria, chief executive, Sunvin Group, which is a vegetable oil brokerage and consultancy firm told Reuters that the buyers are looking to buy the oil from Malaysia, but it cannot fill the demand.
Palm oil is used in many things like cakes, cosmetics and cleaning products.
Source : wionews