News of relief for people struggling with inflation. In the coming time, prices of edible oils may see a softening. According to Reuters, Indonesia has sold palm oil since May 23 and has announced removing the export ban. On May 19 itself, Indonesian leaders demanded the President lift the ban, after which its decision was taken today.
The industry had urged that due to the ban on exports, the palm oil storage facilities in the country have been filled, and if the restrictions remain for some time, there may be a situation of closure of work in the industry, which can cause a lot of damage. Due to the ban on the export of palm oil, there was an increase in the prices of edible oils. With the lifting of restrictions, the possibility of increased supply may see a softening in prices once again.
The crisis of stoppage of work in front of the palm industry
The export ban also made the situation difficult for Indonesia’s palm oil industry. The Finance Minister of the country admitted that even though this decision may bring down the prices of palm oil, it is possible to lose more than $ 400 million to the industry every month.
At the same time, in a talk with Reuters, Indonesia’s industry said that if the restrictions are not lifted by the end of May, then the work in the industry may come to a standstill. Indonesia, the world’s largest palm oil producer, banned the export of crude palm oil (CPO) from April 28 last month.
Indonesia took this decision, given the rise in edible oil prices. However, this decision hurt many such countries dependent on the import of edible oil. India is also included in this. There was already an increase in the prices of edible oils in India. After Indonesia’s decision, further pressure on the prices increased.