Indonesia will ban the export of palm oil from April 28 amid a shortage of this product in the country, the Nikkei newspaper reports.
Indonesian President Joko Widodo said on Friday that the ban is in place indefinitely.
Such a decision, according to him, was made in order to “ensure a sufficient and affordable supply of edible vegetable oil in the country.”
Indonesia is the world’s largest producer and exporter of palm oil. The previous ban on the export of this product from the country was introduced at the end of January and lifted in March. The imposition of the ban sent palm oil prices skyrocketing to record highs.
A significant rise in prices was noted at the end of last year, and already this year the situation was aggravated by the Russian-Ukrainian conflict, which, according to experts, could limit the supply of vegetable oils on the world market.
Despite the fact that the supply of palm oil in Indonesia, which fell sharply at the beginning of the year, has now increased, prices remain high, which pushes up inflation in the country.
July palm oil futures on the Malaysian derivatives exchange rose 1.1% on Friday to 6,384 ringgits ($1,483.62) per ton.
