Indonesian Palm Oil Export Ban to Cause 'Major' Supply Chain Issues, Report Says
Indonesia recently imposed an export ban on palm oil products, the Hong Kong Trade Development Council reported May 10. The ban, which applies to refined products and crude palm oil, will remain until the domestic price of bulk cooking oil…
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is reduced, the report said. HKTDC said the ban is likely to “cause major supply chain disruption” across Asia and in other regions, partly because Indonesia accounts for a majority of the world’s palm oil production. Malaysia, the second-biggest palm oil producer, is “unlikely” to fill the loss of supply from Indonesia in the short term, the report said. HKTDC said the cooking oil market is already facing pressure due to Russia’s war in Ukraine, which has hurt sunflower oil production.