Indonesia to lift export ban on palm oil as prices start to drop

By bfnadmin  | Date: 2022-05-21

Indonesia to lift export ban on palm oil as prices start to drop

Indonesia’s President, Joko Widodo, has reportedly stated that the country is all set to lift the ban on the export of palm oil as the price of the cooking oil has started to decrease domestically.

As per sources, Jokowi, as the president is famously referred to, stated that Indonesia requires nearly 194,000 tons of cooking oil in bulk every month.

Reportedly, this year in March, before the export ban, the supply of the oil across the nation was just 64,500 tons, which reached 211,000 tons after the implementation of the export ban in April.

Joko mentioned that the price of the cooking oil in bulk was nearly 19,800 rupiah ($ 1.35) per liter prior to the ban, which has reached to an all-time low ranging between 17,200-17,600 rupiah (($1.17 – $1.20) a liter.

President Joko quoted that with respect to the present price and supply of the cooking oil, and considering the vast work force of 17 million workers currently working in the palm oil sector, he has decided to restart the export of cooking oil by 23rd May 2022.

However, Joko added that even after the upliftment of the ban, the government will closely monitor the situation to ensure equal and budget friendly distribution of cooking oil for the people of the country.

According to reports, despite Indonesia being the largest producer of palm oil across the world, the government had to impose a all-out export ban in April after witnessing shortage of cooking oil in the country for months, which had affected millions of people.

Most notably, the scarcity of the cooking oil surged the prices of the commodity by more than 70%, which led to increase in the prices of food.

As per credible sources, the government decided to continue the ban until the price of oil reached below 14,000 rupiah ($ 0.95) per liter, but this led to series of protests by the farmers in Jakarta as the ban led to severe increase in the prices of palm oil fruit.

For the record, it has been claimed that presently, the average price of cooking oil in the country is 17,100 rupiah ($1.17) per liter, and even less in some of the regions.

Source Credits: – https://www.channelnewsasia.com/asia/indonesia-lifts-palm-oil-export-ban-may-23-jokowi-2693216

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