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Big respite for Indian consumers as edible oil price eases: Here’s list of things that could get affordable

New Delhi: Indonesia has lifted the ban on the exports of palm oil from Monday (May 23, 2022) -- a move that will tremendously benefit consumers in India and other importing nations in ways more than one. The three-week-old export ban has led to a sharp increase in the prices of domestic cooking oil amid rising inflation in the backdrop of Russia’s intervention in Ukraine. The world’s largest palm oil exporter, Indonesia, had halted the exports of palm oil to make sure that the country meets its domestic demands first without any hiccups.

However, with the supply of bulk cooking oil reaching greater than required levels, the country is all geared up to restart its exports, Indonesian President Joko Widodo pointed out on Thursday. Edible oil prices have finally started to ease down. According to media reports, retail oil prices have dropped by Rs 2 per kg in India after Thursday’s announcement.

Zee Media Bureau|

Updated:May 20, 2022, 02:15 PM IST

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What is Palm Oil?

Palm oil is a vegetable edible oil that is used for cooking. The oil, which is derived from the mesocarp of the fruit of the oil palms, also finds its use in several industries including processed foods, ice creams, soaps, cosmetics and even biofuel.

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Why is Palm Oil Crucial?

Being more affordable than most vegetable oils, palm oil is extensively used in several industries as a key ingredient. A shortage in the supply of palm oil could inflate the prices of other products. It can also be used as a substitute for cooking oil.

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Will Palm Oil Get Cheaper?

Indonesia restarting the exports of palm oil could ease the prices of palm oil in the coming days, as the global demand goes down a bit. As of now, the price of the bulk cooking oil hasn’t yet receded to the targeted 14,000 rupiahs per litre price.

“In several regions, prices of cooking oil were still relatively high, but I believe in coming weeks they will be more affordable,” Indonesian President Widodo had said in a video statement.

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India’s Dependency On Palm Oil Imports

India imports about 8 to 8.5 million tonnes of palm oil every year. About 40 to 50 per cent of India’s palm oil imports come from Indonesia while the rest of the demand is met by neighbouring Malaysia.

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List of Things That Could Get Cheaper

The latest move by the Indonesian government will bring cheer to the common man reeling under the ever-increasing inflation. According to media reports, palm oil is used in 50% of the things used by an average urban Indian.

Here’s the list of items that could get cheaper with dropping palm oil prices:

1. Cooking Oils

2. Soaps, shampoos

3. Processed foods such as noodles, chips

4. Cosmetic items

5. Personal care products