NEW DELHI: The edible oil prices may go up by Rs 3-5 a kg in India immediately after the Indonesian government announced a ban on exports of palm oil due to shortage in the local markets.
Though the ban applies from 28 April 2022, traders and edible oil manufacturers in India see prices of all edible oils going up by Rs 3,000-5,000 per tonne in the immediate term as the ban has disrupted the sentiments.
Indonesia is the largest producer and exporter of palm oil. It produces 48 million tonnes (MT) of palm oil annually of which 17 MT is used locally and the rest is exported. India imports around 4 million tonnes of palm oil from Indonesia.
"With the shortage of palm oil, prices of all edible oil would shoot up in India as the prices (of edible oils) move in tandem," said Dr VB Mehta, executive director of The Solvent Extractors' Association of India (SEA of India).
He says that the real impact (of the news) would be felt only on Monday when the markets open, but initial reports indicate the sellers might increase the retail prices by Rs 3,000-5,000 per tonne. The Indonesia export ban would come as a double whammy for consumers as edible oil prices have been increasing ever since geo-political tensions began in eastern Europe.
Most edible oil prices have seen a 20-25 per cent jump in prices over the past one year. Sunflower, Mustard and groundnut oils are available at Rs 185-190 per kg in the retail market. Retail palm oil prices are hovering around Rs 155 per kg in Delhi.