Palm Oil Export Ban: There will be relief from the inflation of edible oils soon, the farmers of Indonesia opened a front against the government

Farmers in Indonesia have opened a front against the government against the ban on palm oil exports. Hundreds of small farmers demonstrated in the capital Jakarta. Because of which the Indonesian government can end the export ban. If this happens, the inflation of edible oils in the country will soon be controlled. Shankar Thakkar, national president of the Federation of All India Edible Oil Traders, says that Indonesia can lift the ban on palm oil exports due to its internal conditions. Because due to the ban, the income of the farmers is decreasing. Indonesia, the world’s top palm oil exporter, banned crude palm oil exports on 28 April.

The ban on export was done to control the rising domestic prices of edible oils. However, government efforts to reduce prices have failed. On the contrary, the farmers there have started suffering. Thakkar said that the protesting small farmers’ group has said that since the export ban, the price of palm oil procured from farmers has come down by 70 per cent from the fixed minimum price. It is estimated that at least 25 percent of palm fruit mills have stopped buying palm fruit from farmers since the ban began. Because the oil storage tanks are full.

India imports edible oil worth about 70 thousand crore rupees every year. Most of the edible oil we import from Indonesia itself. Apart from this, sunflower oil comes from Ukraine and Russia. These days the import of sunflower oil is affected due to the Russo-Ukraine war. Now Indonesia has banned exports, due to which the inflation of edible oils has increased in India.

Central government will also have to make pressure

Thakkar said Indonesian officials say that exports will remain in force until the price of cooking oil there falls. However, the prices have not come down yet. Thakkar says that more pressure than this is on the farmers’ protest. No government can make farmers angry. The organization’s General Secretary Tarun Jain said that the Indian government should force Indonesia to start exporting palm oil to India by making diplomatic pressure. Otherwise the prices of edible oils in the country may go out of control.

Indonesia is also under pressure because of this

Shankar Thakkar says that many edible oil producing companies of Indonesia have stopped buying Palm Fresh Fruit Bunch (FFB) from the producers. Because of this, the farmers have stopped harvesting FFB, due to which the farmers there are upset and they are being forced to protest against the government. Crude palm oil reserves are full. Now there is a shortage of tanks required for storage.

Malaysia’s eye on Indonesia’s market

There is a shortage of refineries to refine crude oil. More importantly, the Indonesian market is now preparing to cover Malaysia. Malaysia has announced a 50 percent reduction in export tax only last week. This poses a real danger of Indonesia losing its export markets. India, China and Pakistan will take advantage of Malaysian export tax cuts and increase the share of Malaysian palm oil in all three markets.