Four industry insiders on Thursday said that Indonesia’s expanded palm oil export restriction had stranded at least 290,000 tonnes of edible oil earmarked for India at ports and oil mills in the world’s biggest producer.
According to authorities, the disruption in shipments caused by Indonesia’s expansion of its export prohibition to include crude and refined palm oil may result in a vegetable oil scarcity in major importer India. Malaysia, the world’s second-largest exporter, is already straining to fulfil rising demand and is demanding near-record rates for fast supplies, according to the sources.
‘Our vessel of 16,000 tonnes is stuck at Kumai port in Indonesia’, Pradeep Chowdhry, managing director of Gemini Edibles & Fats India Pvt Ltd said, adding, ‘We don’t know when Indonesia will lift the ban, and stuck shipments will be delivered’.
India is the world’s largest importer of palm oil, importing over half of the 700,000 tonnes it requires each month from Indonesia. Buyers are racing to buy from Malaysia, but the country’s capital, Kuala Lumpur, is unable to meet demand, as per Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil trading and consulting organisation.
He said that Malaysian vendors are obligated to meet their previous agreements and are unable to supply palm oil in time for shipping.
Also Read: Mollywood actress Manju Warrier’s life in danger, claims filmmaker Sanal Kumar
Palm oil, which is used in everything from cakes and frying fats to cosmetics and cleaning goods, accounts for about 60% of worldwide vegetable oil shipments, with Indonesia accounting for roughly a third of all exports. Imports supply roughly two-thirds of India’s vegetable oil consumption.
New Delhi was depending on palm oil after sunflower oil shipments from major supplier Ukraine were interrupted due to Russia’s ‘special operation’ in the nation.
Post Your Comments