Impact Of Plam Oil Exports Ban By Indonesia And When Will Indonesia Lifted The Ban ?

Crude Palm Oil Futures

Palm Oil Analysis (B – Trams ):As Indonesia The World’s Largest Producer Of  “Palm Oil” Decided To Ban  Shipments Of  Cooking Oil And Its Raw Material To Bring Down Domestic Prices , After  Announcement flipped The Minister’s Statement  In Which He Had Said The Export Ban  Cover Refined, Bleached, And Deodorized Palm Oil / Palm Oilen , Crude Palm Oil (CPO), Used Cooking Oil And  Include All Cooking Oil Or Its Raw Material

Also Indonesian President Joko Widodo Said In A Separate Statement .”Once Domestic Needs Have Been Met, Of Course I Will Lift The Export Ban.

 What Will The Impact Of  Ban Of Palm Oil By Indonesia?

Howerver, Remember  That Globally The Food Crisis  Getting Worst Day By Day As Per The Report Of “United Nation” Due To War Of Russia-Ukraine , The Prises Of Commodities Surge To 13 % Record High .

Where As,The Largest Importer Of Indonesian Palm Oilen Is China, Pakistan, India And Bangladesh While Indonesia Produces Around 4 Million Tonnes Of Palm Oil Every Month And Consumes Around 1.5 Million Tonnes.

In 2021, Indonesia Consumed 18.4 Million Tonnes Of Palm Oil Out Of Total Production Of 51.3 Million Tonnes, GAPKI estimates, While Source Said That Indonesia  May Not Have  Sufficent Space To Stock More Oil In Vessels .

In This Regard B -Trams  Talk With Different Analyst

Disscussion Between Abdul Hameed  And Dr.Sathia Varqa

They Said That, Asia Market Will Badly Effected More Then China , Also They Said That China Demand Is Weak Due To Covid Situation And LockDown In Beijing  And Shanghai

Also Abdul Hameed Said, That Now We Will Enter The New Bullish Era Globally Edible Oil Shortage Will Increase And  Many Countries To Confront Their Own Crops And Used Domestically Resources And Production.

While In Pakistan We Will See Huge Shortage Of Ghee In June,And Paksitan Will Rely On Their  Local Crops And Soybean Stocks As In May Good Arrival Of Soybean He Said,


Describe In Two Categories Impact:


  •  Container Supply Chain getting more Slot Available because Container using for Palm Oil Shipment will be reduced.
  •  It’s time to big chance for fish cooking oil commodity, where fish cooking oil from Vietnam price still under Sunflower Oil


  • Less of distribution of cooking oil in the market and will gain price increase.
  • NB: Still hold to make big decisions, because will be coming surprised news after Indonesia holidays of Idul Al-fiter, it’s will be coming after 9th May.


  • About   1.3 – 1.5 Million Metric Tonne  Of Refined Palm Oil And Olein Redirected To Domestic Consumption.  There Will Be More Focus From Foreign Demand On Malaysian And Thailand , While Palm Oil Will  Relate The Value Of Soft Oils.


When Will Indonesia Lifted Up The Ban ?

The Economy Of Indonesia Depands Upon Its Major Export As Palm Oil , Coal ,Coffee , Cocoa And Rubber, Earlier We See Indonesia Ban The Export Of Coal For Its  Domestic Market Obligation (DMO) Policy To Full Fill Its Domestic Requirments .

Where As Dr Sathia Varqa Said Indonesia Will Lifted Up The Ban After The Eid -ul-Fitr And Marcello from Fillips Future Said , It Look Like A 3 Weeks Ban .

However , Malaysian Palm Oil Boared (MPOB) Director-General Datuk Dr Ahmad Parveez Said, That Malaysia The 2nd Largest Producer Of Plam Oil May Not Be Able To Fill The Supply Gap To Meet Global Demand Because Malaysia Still Facing Labour Shortage .

He Also Said That Indonesia Exported 56% Of Palm Oil To World ,While Malaysia Accounted For On;y 30.5 %

In The Conclusion We Say That Market Will Steady Toword  Bullish  Till The Production Level Of Malaysia Increase To meet the Global Demand, And Also  Till To Ease  Supply Distruption  Of Soft Oil Via Black Sea .


About Haroon Khawaja

Haroon Khawaja Is a Journalist & CEO Of B-Trams , Ex Reporter At Geo News

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