Jakarta – Vegetable oils are the source of nutritious food, and edible oil and fat that have been recommended by the Food and Agriculture Organization (FAO).
The vegetable oils consist of many types, but globally there are four that are consumed the most, namely palm oil, soybean, rapeseed, and sunflower. Among the four, palm oil is the most competitive in price, making it affordable among buyers in poor countries which rely on imported vegetable oils.
The Palm Oil Agribusiness Strategic Policy Institute (PASPI) reported that the availability of palm oil has benefited consumers in poor countries as it allows them to consume nutritious foods based on palm oil at affordable prices. “The availability of palm oil-based food products with relatively cheap prices can increase the purchasing power and the affordability of poor people,” PASPI reported.
PASPI also reported that such condition has also benefited the low income countries, which are also palm oil importing countries, such as India, Pakistan, Bangladesh, and countries in Africa.
Studies conducted by Mehta (2020) and Janmohammed (2020), which are included in the PASPI report, have shown that there are more people of lower and middle income in India, Pakistan, and Bangladesh consume palm oil as cooking oil compared to other vegetable oils.
“Price disparity of palm oil with other three vegetable oils (soybean, rapeseed and sunflower) at the global market ranges from US$100 to US$200 per ton above the price of palm oil. The low price of palm oil benefits global consumers, especially those of low income,” said PASPI.
PASPI also mentioned the study conducted by Kojima et.al., (2016), which shows that if the prices of soybean, rapeseed, or sunflower increase, then consumers will turn to palm oil. With such mechanism, the availability of palm oil prevents other vegetable oils from rising too much.
“The stable availability of palm oil along the year at relatively cheap price will increase the purchasing power and affordability of the low income people in getting nutritious foods in the form of cooking oil, and other palm oil-based food products,” PASPI reported. (*)
Source: wartaekonomi.co.id