Domestic edible oil prices, which are already high, are expected to rise further as Indonesia, the world’s largest producer of palm oil, announces a restriction on exports on April 28.
Indonesia has also been dealing with high edible oil prices as a result of internal shortages and rising prices.
China and India are two of the world’s largest importers of palm oil, with Indonesia accounting for more than half of the global supply. Palm oil is found in a wide range of items, including cooking oils, processed foods, cosmetics, and biofuels. It is the most extensively used vegetable oil in the world, and it is used to make a variety of items such as cookies, margarine, laundry detergents, and chocolate.
Following Russia’s invasion of Ukraine, which disrupted shipments of sunflower oil from the region, global cooking oil prices have risen this year.
The Black Sea exports 76 percent of the world’s sunflower oil.
A suspension in Indonesian shipments would result in India losing around 4 million tonne of palm oil per month. According to experts, India’s sunflower oil supplies have practically halved to around 100,000 tonnes per month. As a result of the Ukraine conflict, which could make things worse for Indian homes.
Meanwhile, after a year of double-digit inflation. India’s wholesale inflation accelerated to a four-month high in March. Owing to a continuous rise in commodity prices following Russia’s invasion of Ukraine.
In March, the Wholesale Price Index (WPI) increased 14.55 percent from February’s 13.11 percent.
Prime Minister Narendra Modi had earlier this year pushed Indian industries. To reduce imports and start purchasing oilseeds grown in the country.