Indonesia is the world’s largest exporter of CPO.
New Delhi: It is rare for any country that the largest producer and exporter of a product is experiencing domestic shortages of the same product and so much so that its government is forced to impose price controls and restrictions on shipments.
Now the situation is such that palm-oil prices in Indonesia are touching the sky. It is now as precious as gold. In the month of March, one liter of branded refined palm-oil was available here for Rs 22,000. In March last year, its price was Rs 14,000. Now the effect of the high price of palm-oil increased in Indonesia is showing its effect on the whole world.
Indonesia is the world’s largest exporter of CPO. This is also having an effect on vegetable oils. Also, on the common man because vegetable oils are an integral part of every household’s diet. That is why everyone can be interested to know the aspects related to Indonesia’s palm-oil crisis.
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But compared to palm oil, Indonesia’s story is exactly the same. The US Department of Agriculture (USDA) has estimated the archipelago’s palm oil production at 45.5 million tonnes (MT) for 2021-22 (October-September). This accounts for about 60% of total global production and is well ahead of the next major producer: Malaysia (18.7 million tonnes). It is also the world’s No. 1 exporter of the commodity with 29 million tonnes, followed by Malaysia (16.22 million tonnes).
Is it affecting India?
This situation which originated in Indonesia is also affecting India. Because India is the largest importer of edible oils in the world. According to government data, India imported 12.70 lakh tonnes of edible oil in January. It was 16% higher than 10.96 lakh tonnes in January last year. It is to be noted that 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 bring the prices of edible oil under control. The government has reduced customs duty on import of palm-oil.
Let us inform that, earlier this duty on refined palm oil was 19.25%. Looks like 13.75 % now. Along with this, the import of soybean and sunflower oil has increased. In January itself, 3.91 lakh tonnes of soybean oil was imported. Whereas 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.