Cooking Oil Prices to Ease After Indonesia Lifts Ban On Export Palm Oil

By Lynnet Okumu / Published May 20, 2022 | 11:48 am




KEY POINTS

According to a Commerce Ministry official, the chief reason for lifting the ban is because Indonesia ran out of storage capacity in less than a month after announcing the sudden export ban.


Kapa Oil Pouring food oil in hot pan for deep frying.

KEY TAKEAWAYS


The world's top oil exporter, Indonesia, on 28th April 2022, announced the ban on the export of crude palm oil and its raw materials to bring down domestic prices. The move came at a time when the prices of cooking oil were already on a rising spree.


The President of the Republic of Indonesia, Joko Widodo, announced that Indonesia will lift its palm oil export ban from Monday 23rd May 2022, a move that could see the surge in cooking oil prices in Kenya to ease.

According to a Commerce Ministry official, the chief reason for lifting the ban is because Indonesia ran out of storage capacity in less than a month after announcing the sudden export ban.

“Indonesia’s domestic consumption of palm oil is much less than their production, so this decision was on the cards. But it has come much earlier than we expected. It will soften the prices and check food inflation that has jumped sharply,” Federation of Indian Export Organizations (FIEO) Director General Ajay Sashay said.

Also, the decision to lift the ban was taken into consideration by the 17 million workers in the palm oil industry.

The world’s top oil exporter, Indonesia, on 28th April 2022, announced the ban on the export of crude palm oil and its raw materials to bring down domestic prices. The move came at a time when the prices of cooking oil were already on a rising spree.

Thousands of smallholder framers have held protests demanding the Indonesian government lift the ban that has not only slashed their incomes but also caused economic hardships across the globe.

Cooking oil, which is a product of crude palm oil, has stubbornly remained above the official guidance of 14000 rupias (96 cents) per litre despite the ban.

Many countries, including Kenya, depend on Palm oil as an alternative to the costly soybean and sunflower oil. Most of Kenya’s palm oil comes from Indonesia, where the two islands of Borneo and Sumatra, some of the world’s biggest palm oil suppliers, are. Malaysia is the second biggest market for Kenya’s palm oil.

Crude palm oil, which makes virtually all of the country’s imports at 93 percent, has significantly affected the local market. The commodity at one point rose above USD 130 a barrel in the global market and is still trading above USD 100 per barrel.

The prices of cooking oil have jumped by almost 33 percent Since March 2022 in Kenya, making it the country’s most expensive essential commodity.

A litre of Fresh Fri and Avena cooking oil in major shopping outlets now sells at 415 shillings. A 5 litre and 10 litres of the same commodities are going for 1,850 shillings and 3500 shillings, respectively.

Besides cooking oil, palm oil is used in many everyday items – from cakes to frying fats, cosmetics to cleaning products, and biofuels to detergents. It is used in Chocolates, margarine, noodles, biscuits, soaps, and shampoos. A surge in palm oil prices has impacted the cost of all these consumer goods over the months.






More Articles From This Author








Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2022
  • January 2022 (293)
  • February 2022 (329)
  • March 2022 (361)
  • April 2022 (294)
  • May 2022 (271)
  • June 2022 (188)
  • 2021
  • January 2021 (182)
  • February 2021 (227)
  • March 2021 (325)
  • April 2021 (259)
  • May 2021 (285)
  • June 2021 (273)
  • July 2021 (277)
  • August 2021 (232)
  • September 2021 (271)
  • October 2021 (305)
  • November 2021 (364)
  • December 2021 (250)
  • 2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (333)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (242)
  • December 2020 (187)
  • 2019
  • January 2019 (251)
  • February 2019 (215)
  • March 2019 (283)
  • April 2019 (254)
  • May 2019 (269)
  • June 2019 (249)
  • July 2019 (335)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (318)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (275)
  • April 2018 (223)
  • May 2018 (235)
  • June 2018 (176)
  • July 2018 (256)
  • August 2018 (247)
  • September 2018 (255)
  • October 2018 (282)
  • November 2018 (282)
  • December 2018 (184)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (189)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (164)
  • February 2016 (165)
  • March 2016 (189)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (247)
  • September 2016 (233)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (164)
  • April 2015 (107)
  • May 2015 (116)
  • June 2015 (119)
  • July 2015 (145)
  • August 2015 (157)
  • September 2015 (186)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (205)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950