The world’s largest palm oil producer, Indonesia, is to ban palm oil exports amid rising prices accelerated by Russia’s invasion of Ukraine. World vegetable oil prices are already at record highs. It is feared that this decision will send them – and the prices of related products – even higher.
Indonesian President Joko Widodo announced last Friday that the government has decided to ban exports of cooking oil and its raw materials from Thursday until further notice.
He said the move was aimed at reducing domestic oil shortages and keeping prices low.
The price of cooking oil in Indonesia has skyrocketed by up to 70% from a year ago as global demand for palm oil rises. It comes amid concerns over a shortage of sunflower oil, produced mainly in Ukraine and Russia.
Price hikes hit kitchens in Indonesia.
Palm oil is the most used vegetable oil in the country. People complain that it has become unaffordable.
The Indonesian Palm Oil Producers Association supports the government’s policy. But the export ban is expected to affect businesses around the world, as the oil is used in a variety of products, including snacks, detergents and cosmetics.