Indonesia last week banned the export of crude and refined palm oil amid global shortage of the edible oil
Sudhanshu Pandey, Secretary, DFPD said that due to higher market prices, a large quantity of wheat was being bought by traders at a higher rate than MSP, which was good for the farmers
He added that a palm oil export target of 34 million tonnes in 2022 would be met
Indonesia has banned palm oil exports, but it has to liquidate stockpile and demand could be met from other sources.
The move adds to the impact of Russia's invasion of Ukraine, which plunged the global edible oil market into disarray.
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Analysts and companies have warned that demand could slow as the Ukraine war and Indonesia's ban on palm oil exports result in higher global food prices
Indonesia said on Friday that the shipment halt will start from April 28 and last until the government deems a domestic shortage resolved
Sri Mulyani Indrawati said that with demand exceeding supplies, the ban announced is "among the harshest moves" the government could take after previous measures failed to stabilize domestic prices
Loss of shipments from Ukraine, the world's top supplier of sunflower oil, and drought in the world's top soybean oil exporter Argentina had already sparked a sharp rise in global vegetable oil prices
India's 60 per cent of the edible oil requirement is met through imports
Consumers may have to pay more for daily essential items with FMCG companies mulling another round of price hike to ease inflationary pressure on commodity prices of items such as wheat, palm oil
Indonesia's palm oil price should not be dictated by external market, its trade minister said, backing his decision to expand palm oil export curbs at time of surging global prices from supply crunch
Ukraine and Russia accounted for nearly 13% of India's edible oil imports last year, supplying 1.6 million tonnes.
Palm oil has become the costliest among the four major edible oils for the first time
Palm oil's record premium over rival oils could squeeze price-sensitive Asian and African consumers already reeling from spiralling fuel and food costs, and force them to curtail consumption and shift
Ukraine and Russia account for about a quarter of the global trade in wheat, a fifth of corn sales, and 80% of worldwide sunflower oil exports.
After a long time, domestic oilseeds have started selling above minimum support price (MSP) and improving farm incomes
Widely used in edible oil blending, cosmetics, processed food products, palm oil's prices on Bursa Malaysia Derivatives is considered to be the global benchmark among trade circles
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