Mumbai, April 28
Indonesia’s wider palm oil export ban has trapped at least 290,000 tonnes of the edible oil meant to be headed to India at ports and oil mills in the world’s top producer, four industry officials said on Thursday.
The disruption in shipments after Indonesia widened its export ban to include crude and refined palm oil will create a vegetable oil shortage in top importer India, the officials said. Second-biggest exporter Malaysia is already struggling to meet higher demand levels and is asking for near record prices for prompt shipments, they said.
India top importer
- The disruption in shipments will create a vegetable oil shortage in India. Second-biggest exporter Malaysia is already struggling to meet higher demand levels and is asking for near record prices for prompt shipments
- India is the world’s biggest importer of palm oil and relies on Indonesia for nearly half of the 700,000 tonnes it takes in every month
“Our vessel of 16,000 tonnes is stuck at Kumai port in Indonesia,” said Pradeep Chowdhry, MD of Gemini Edibles & Fats India Pvt Ltd., which buys around 30,000 tonnes of Indonesian palm oil every month.
“We don’t know when Indonesia will lift the ban, and stuck shipments will be delivered.”
India is the world’s biggest importer of palm oil and relies on Indonesia for nearly half of the 700,000 tonnes it takes in every month.
Buyers are now rushing to make purchases from Malaysia, but Kuala Lumpur cannot fill the demand, said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm. Malaysian sellers are obliged to meet their old commitments and cannot provide palm oil for prompt shipments, he said.
Palm oil — used in everything from cakes and frying fats to cosmetics and cleaning products — accounts for nearly 60% of global vegetable oil shipments, and top producer Indonesia accounts for around a third of all vegetable oil exports.
India meets nearly two-thirds of its vegetable oil demand from imports. New Delhi was banking on palm oil after sunflower oil supplies from top exporter Ukraine were halted because of what Russia calls its “special operation” in the country. — Reuters
For all the latest business News Click Here
