India has requested Indonesia to enhance palm oil imports to cover for a loss of Black Sea region sunflower oil supplies related to the Ukraine crisis.
India, the world’s largest buyer of edible oil, relies on top producer Indonesia for more than half of its palm oil imports, but has been concerned by export limitations imposed by Jakarta in January to bring down domestic prices.
Limited palm supply, along with a halt in shipments of sunflower oil from the Black Sea region – which accounts for 60percent of international sunflower oil production and 76% of exports – have propelled global vegetable oil prices to all-time highs.
After Indonesia imposed trade sanctions on January 27, the total cost of imported crude palm oil has increased by 38percent in India. Soyoil, India’s second most used oil after palm, has increased by 29 percent this year, whereas sunoil sources have ceased selling the oil when Russia threatened Ukraine.
Last year, Ukraine and Russia supplied 1.6 million tonnes of India’s cooking oil supplies, accounting for approximately 13percent of total imports.
This week, Indian government leaders held a virtual meeting with Indonesian authorities to discuss increasing palm exports to India, a “reliable big consumer,” according to two official sources familiar with the situation.
New Delhi has also requested that Jakarta temporarily relax its biodiesel blending standards, which require that 30percent of total of all biodiesel sold in the country be generated from palm oil.
‘For a limited period, Indonesia can prioritise food before petrol,’ one of the sources familiar with the situation added.
Post Your Comments