Indonesia’s Palm Oil Export Ban Takes Effect Today: Here’s What You Need to Know..!!

Indonesia’s Palm Oil Export Ban Takes Effect Today: Here’s What You Need to Know..!!

Almost 300,000 tonnes of palm oil that was supposed to be sent to India have been stuck at ports and oil mills in Indonesia, which is the world’s largest producer.

From Thursday, Indonesia has banned the export of palm oil, which is made from trees that grow in the country. When it came time to make palm oil, however, the world’s biggest producer of palm oil, came up with a new plan.

Cleared up: It was said that the export ban that was announced last week will not affect crude palm oil. It will only apply to refined, bleached, and deodorized (RBD) palm oil. You need to know all this information about the ban and the facts about it:

Officials say that because Indonesia has banned the export of crude and refined palm oil, there will be a shortage of vegetable oil in India, which is the top importer. Malaysia, the second-largest exporter, is already having trouble meeting a higher demand level.

As the world’s biggest importer, India buys a lot of palm oil from Indonesia. It buys about half of the 700,000 tonnes it takes in every month.

Sundin Group CEO Sandeep Bajoria says that buyers are now rushing to buy from Malaysia, but Kuala Lumpur can’t keep up. Sundin Group is a vegetable oil brokerage and consulting firm.

People who sell palm oil in Malaysia have to keep their promises, so they can’t make palm oil for quick shipments, he said. Patel said that limited supplies and high demand next month because of weddings and festivals could push up prices in India, where prices could go up.

Indonesia Bans Palm Oil Exports – Why?

As a result of a severe food shortage and rising prices, Indonesia last week announced that palm oil exports would be banned from April 28, which is when the ban would start.

indonesia ban palm oil

The country makes the most palm oil in the world. It has been hard for the world to get cooking oil because of the Russia-Ukraine war. This has caused palm and soy oil prices to reach record highs. This export ban and the rise in Malaysian taxes will make the situation even worse.

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How much Palm Oil does India buy?

India is the world’s biggest importer of palm oil, and it needs Indonesia and Malaysia to meet its needs. It takes India 13.5 million tonnes of edible oil each year to make that happen.

A lot of this is palm oil. Out of this, about 63% is palm oil. Nearly half come from Indonesia, and the rest comes from Malaysia, which is right next door. India buys about 4 million tonnes of palm oil from Indonesia every year.

It Is Used in A Lot of Different Industries.

The products made from palm oil and its byproducts are used in everything from food to detergents to beauty products and biofuels. Soaps and margarine are made with these. They are also used to make things like noodles and biscuits and chocolates. People in these industries will have to pay more for their materials if palm oil prices go up, so this is why.

In Mayank Shah’s words: “That’s not just for food companies, but for all FMCG (fast-moving consumer goods) companies.” That’s because there are a lot of different businesses out there, like those that make soaps and other things. So, it’s going to be very hard.


As the head of research at Swastika Investment said, “Palm oil and its derivatives are used to make many things that people use every day, like soaps and shampoos.”

This will hurt companies like HUL, Nestle, Britannia, Godrej Consumer Products Ltd, Marico Ltd, and more. Packetized food and soap manufacturers will have no choice but to raise prices because of the high costs. This means that their sales volumes will be affected.”

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Indians are on a mission to make palm oil.

It started last year. The National Mission on Edible Oil-Oil Palm (NMEO-OP) was set up by the government, and it will cost more than Rs 11,000 crore over five years.

The Mission wants to change the prices of edible oil in the country, which are set by the price of imported palm oil. It also wants to increase the amount of palm oil that is made in the country by three times to 1.1 million MT by 2025-26.

Officials say the main features of NMEO-Oil Palm are that it helps farmers get planting materials, inputs for intercropping, and maintenance for up to four years.

palm oil india mission

It also helps set up seed gardens, nurseries, micro-irrigation, bore wells/pump sets/water harvesting structures, vermicompost units, solar pumps for harvesting, harvesting tools, custom hiring centers for harvesters, farmers, and officers, and replanting old oil palm gardens.