Indonesia’s ban on palm oil exports has shocked global markets for edible oils that have already hit record prices this year and sparked alarm among major importers of the cooking medium.
Palm oil is the most widely used vegetable oil in the world and is used in the manufacture of many products, such as cookies, margarine, laundry detergents, and chocolate.
Below are details on the major edible oils in the world:
Palm oil is by far the most produced, consumed and traded edible oil in the world, accounting for approximately 40% of the supply of the four most popular edible oils: palm oil, soybean oil, rapeseed oil (canola ) and sunflower. seed oil.
About 77 million tons of palm oil is expected to be produced this year, according to the US Department of Agriculture (USDA). Indonesia is the leading producer, exporter and consumer of palm oil, accounting for around 60% of the total supply. Malaysia is the second largest supplier with around 25 per cent of the global supply share.
India is the main importer of palm oil, while China, Pakistan, Bangladesh, Egypt and Kenya are other important buyers.
In a typical year, palm oil accounts for 40 percent of India’s dietary vegetable oil consumption, according to the USDA. Import forecasts have been lowered this year due to Indonesia’s restrictive trade policies, high edible oil prices and other factors.
Global palm oil production plummeted in 2020 and 2021 due to a drop in migrant labor on plantations in Southeast Asia, leading to reduced fruit bunch harvesting and lower fertilizer application for crops. trees.
Indonesian authorities previously restricted edible oil exports between the end of January and mid-March to try to control domestic cooking oil prices.
Soybean oil is the second most produced edible oil, with around 59 million tonnes expected to be produced this year. China is by far the largest producer (15.95 million tons), followed by the United States (11.9 million tons), Brazil (9 million tons) and Argentina (7.9 million tons).
Prices soared to a record high on concerns over Indonesia’s decision to effectively ban palm oil exports.
Argentina is the top exporter of soybean oil but is expected to ship less oil this year after a poor end to its soybean growing season. The country briefly halted new foreign sales of soybean oil and meal in mid-March before raising the export tax rate on soybean oil and meal from 31% to 33% in a bid to reduce inflation. internal food.
Brazil and the United States are the next largest exporters, according to the USDA. More soybean crushing plants are expected to open in the United States in the coming years due to strong demand to use the oil in biofuels, but the ability to increase demand in the short term is limited.
India is the main importer of soybean oil.
About 29 million tons of rapeseed oil is expected to be produced this year, according to the USDA, mainly in Europe, Canada and China. China and the United States are the main importers.
In 2021, drought dramatically reduced Canada’s canola harvest, a variety of rapeseed, and Europe also suffered crop damage, reducing oil supplies by 2022.
Canada exported about 75 percent of its canola oil used in food and fuel last year, with the United States taking 62 percent and 25 percent going to China, the Canadian Oilseed Processors Association said.
The main importer of edible oil, India, harvested a record crop of rapeseed this year, popularly known as mustard in the country.
SUNFLOWER SEED OIL
Russia and Ukraine account for 55 percent of the world’s solar oil production and 76 percent of world exports. Since the Russian invasion of Ukraine in February, shipments from the region have plummeted and this year’s production is expected to be interrupted in Ukraine.
China, India and Europe are traditionally the main importers of solar oil, but today all buyers are struggling to find alternative oils to replace lost supplies from the Black Sea.
More than 90 percent of India’s imported sunflower oil typically comes from the Ukraine and Russia.
Argentina is the fifth largest exporter of sunflower oil in the world, according to the USDA.