Indonesia to Lift Palm Oil Export Ban Likely Giving India Big Relief

INTERNATIONAL

From 23rd May of this year, Indonesia will resume its palm oil export, as the production of domestic cooking oil increases. Indonesia is the world's top palm oil exporter.

The Indonesian government lifted the ban by considering the welfare of 17 million workers in the palm oil industry. But the price of the bulk cooking oil has not yet reached the targeted 14,000 rupiahs per liter.

The Indonesian government banned the export of crude palm oil on 28th April 2022 and halted some of its derivative products to control soaring prices of domestic cooking oil, rattling global vegetable oil markets. The ban slashed the income of the employees in the industry and resulted in protests on a demand to end the export ban.

Since the export ban, the price of palm fruit had dropped 70% below a floor price set by regional authorities through an agreement between mills and large-scale cooperatives and it affected the independent farmers.

India imports 8-8.5 million tonnes of palm oil from Indonesia and Malaysia. Palm oil is used in everything from food to soap to fuel.

 

   Important points for the exam:

  • Indonesia will resume its palm oil export on 23rd May of this year as the production of domestic cooking oil increases.
  • The government banned the export of crude palm oil on 28th April 2022 and halted some of its derivative products to control soaring prices of domestic cooking oil, rattling global vegetable oil markets. 
  • This ban increases the inflation rate higher as palm oil is used in everything from food to soap to fuel.
  • The Indonesian government lifted the ban by considering the welfare of 17 million workers in the palm oil industry. 
  • India imports 8-8.5 million tonnes of palm oil from Indonesia and Malaysia.

   Facts to know:

  • World’s top palm oil exporter: Indonesia.
  • Capital of Indonesia: Jakarta.
  • The official currency of Indonesia: the Indonesian rupiah
  • President of Indonesia: Mr.Joko Widodo.
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