Govt aims to double area under cultivation to reduce dependence on imports, to offer subsidies and price support
The archipelago nation issued the ban last month to secure supplies of the commodity, used in a range of goods from chocolate spreads to cosmetics, in the face of a domestic shortage.
India is the world's largest importer and second-largest consumer of palm oil, which accounts for around 30 per cent of the country's edible oil consumption, said Ind-Ra.
Further, it noted that prices of all edible oils have witnessed a significant surge since the Covid outbreak that triggered supply chain disruptions globally.
The Indonesian oil ban will have a "devastating effect" unless sorted out quickly, an edible oil refiner official said.
An expert said that the real impact 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.
Pinching the pockets of countless households, the edible oil market is on fire due to the ongoing hostilities between Ukraine and Russia.
It may be mentioned here that around 90 per cent of palm oil consumed in the country is currently being imported from other countries, including Ukraine.