Indonesia is the world’s largest exporter of CPO.
New Delhi: It is rare for any country to be the largest producer and exporter of a product experiencing a local shortage of the same product and therefore forcing its government to impose price restrictions and restrictions on shipments.
The situation is such that palm oil prices are skyrocketing in Indonesia. It is now as precious as gold. In March, a liter of branded refined palm oil cost Rs. Was available at 22,000. It was priced at Rs 14,000 in March last year. Now the effect of high palm oil prices in Indonesia is being felt all over the world.
Indonesia is the world’s largest exporter of CPO. It is also affecting vegetable oils. Also, on the common man because vegetable oil is an integral part of every household diet. That’s why everyone might be interested to know the aspects related to Indonesia’s palm-oil crisis.
But compared to palm oil, the story of Indonesia is exactly the same. The US Department of Agriculture (USDA) estimates the archipelago’s palm oil production at 45.5 million tonnes (MT) for 2021-22 (October-September). It accounts for about 60% of the total global production and is ahead of the next major producer: Malaysia (18.7 million tons). It is also the world’s No. 1 exporter of commodities with 29 million tonnes, followed by Malaysia (16.22 million tonnes).
Does it affect India?
This situation arising in Indonesia is also affecting India. Because India is the largest importer of edible oil in the world. According to government figures, India imported 12.70 lakh tonnes of edible oil in January. That is 16% more than 10.96 lakh tonnes in January last year. Palm oil accounts for 60% of India’s total edible oil imports.
Inflation Weekly, monthly data shows that due to Indonesia’s palm-oil crisis, edible oil prices in India have also increased by 20-25%. The government is making several alternative arrangements to control edible oil prices. The government has reduced the customs duty on palm oil imports.
The duty on previously refined palm oil was 19.25%. Now looks like 13.75%. Along with this, imports of soybean and sunflower oil have also increased. In January alone, 3.91 lakh tonnes of soybean oil was imported. In January last year, only 88,667 tonnes of soybean oil was imported. At the same time, 3.07 lakh tonnes of sunflower oil was also ordered in January. It was 2.05 lakh tonnes in January last year.