JAKARTA — Ahead of the fasting month of Ramadan and celebration of Eid al-Fitr 2023, Indonesia has planned to restrict the exports of crude palm oil (CPO) as the government wants to secure its domestic supply for production of cooking oil, which is a politically-vulnerable staple food in the country.
Concerning the issue, India as one of the world’s major consumers and importers said that such possible decision by Indonesia will not cause shortage of palm oil in the country. It is because the stock of India has increased to the highest level after conducting aggressive imports during the last three months.
Based on the reports of Reuters on Tuesday, 14 February 2023, India’s imports of vegetable oils during the first quarter 2022/23 that was started since 01 November 2022, rose by 25% from that of the previous year to around 4.5 million tons. The increase of the imports had raised its stock to a record level of 3.6 million tons on 01 February 2023 compared to that of last year at 1.83 million tons.
“Indonesia’s restriction of palm oil seems not to cause problem for India. It’s stock already on the secured level,” President of Solvent Extractors’ Association of India, Ajay Jhunjhunwala was quoted by Reuters as saying.
Ajay Jhunjhunwala said that the supply of rapeseed from the new harvest season, which is expected at 10-15% higher than that of last year harvest, will get a momentum since next month and increase availability of vegetable oils in India. It was also mentioned that the Indonesia’s export restriction will be possibly revoked after the fasting month of Ramadan, which will end on 21 April 2023.
“This year we’ll see different ball games. There are many supplies of sunflower which was restricted last year due to the conflict of Russia-Ukraine,” a dealer said.
India’s import of sunflower in January 2023 surged to a record level of 473,000 tons, almost triple the average monthly import as main exporters of Russia and Ukraine tried to reduce their stocks. Meanwhile, India’s buyers of palm oil are predicted to try to increase their purchase from Malaysia, but not at the amount of last year. (*)
Source: buddyku.com
