The government is taking steps to keep edible oil prices under control after Indonesia banned the export of crude palm oil from April 28. Union Minister of State for Consumer Affairs, Food and Public Distribution Ashwini Kumar Choubey said on Friday that action is being taken against those involved in hoarding essential food items.
When asked about the rising prices of edible oilChoubey said that the country has to import these items.
“Despite this, we are making every effort to ensure that people get edible oil at a controlled price. We are working to keep the prices under control,” Choubey said in a PTI report.
The minister said that the government is keeping a close watch on the stock of all essential commodities like oil and pulses on a daily basis.
He further said, ‘We are making efforts to ensure that the prices remain stable in the market.
At the same time, he said that the state governments should crack down on hoarding of essential commodities.
India Ratings in its latest research note today said that Indonesia’s recent decision to include Crude Palm Oil (CPO) on April 27, 2022 under the purview of its export ban with effect from April 28, 2022, has resulted in the supply and prices of edible oils globally. Both are likely to be affected.
In Ind-Ra’s opinion, the move could remove about 2 million tonnes (mnt) of palm oil supply from the global market every month, which accounts for about 50% of the global monthly trade volume, thereby increasing the replacement demand for other oils. can. And thus there was a massive increase in the prices of edible oil.
Ind-Ra said in its note, “The ban puts half of India’s palm oil supply under a cloud, while also increasing consumer inflation. Higher imports at continued depreciation will affect prices of other edible oils.” “
However, Ind-Ra also believes that the ban is unlikely to last long, given that Indonesia consumes less than 40% of its total palm oil production, with the resulting effect being transient.
Indonesia, the world’s largest producer and exporter of palm oil, banned the export of palm oil and raw materials to combat a domestic shortage of cooking oil and reduce skyrocketing prices.
Indonesia clarified that the ban would be only on refined, bleached, odorless (RBD) palm olein, however, allowing the export of crude palm oil (CPO) or other derivative products.
The Indonesian export ban has come into effect from 28 April.
India is the largest importer of palm oil in the world.