Cooking oil prices may come down as govt mulls quid pro quo with Indonesia
1 min read 14 Jun 2022, 09:07 AM ISTIndia imports about 8 million tonnes of palm oil annually and the commodity accounts for nearly a 40% share of its overall edible oil consumption basket
PremiumThe Indian government is planning to export wheat to Indonesia and in return, asking the southeast Asian to supply palm oil smoothly in order to address the problem of edible oil shortage and food inflation in the country.
Although India has banned wheat export to meet the domestic demand, the country has kept the option open only through government-to-government deals, according to a report by the Hindustan Times, Livemint's sister publication. On May 13, India imposed a ban on wheat export.
In India, palm oil is an essential commodity used in several items. The palm is inexpensive when compared to other edible oils and is a preferred cooking medium.
India imports about 8 million tonnes of palm oil annually and the commodity accounts for nearly a 40% share of its overall edible oil consumption basket. Indonesia accounts for nearly 48 million tonnes (mt) of palm oil out of the 75 mt produced globally every year and it is the country’s leading source of revenue.
Besides, two officials, citing anonymity told the daily that even Indonesia is interested in wheat import from India, which is possible via a G2G deal.
Indonesia which has eased the export of palm oil, a G2G agreement with India will be beneficial for India as it will ensure no sudden disruption in the supply of the edible oil even in the future, an official said.
India is in the midst of record-high retail inflation driven by rising prices of food and fuel. Food inflation in April soared to 8.38%.
Palm oil imports from Indonesia are of special significance to India as palm oil and its derivatives are used in the production of several household goods such as soaps, shampoos, biscuits, and noodles.
