InfoSAWIT, LONDON — The policy that the Government of Indonesia published to stop palm cooking oil materials and palm cooking oil made soybean oil price hit the highest level, Friday (22/4/2022) because of the worry about decreasing stocks of alternative vegetable oil, fuel and food inflation in the globe.
For the loss of supply from Ukraine as the main sunflower producer in the world and the drought which impacted to soybean production, Argentina got the significant increasing price of vegetable oil in this year.
Soybean oil at Chicago Board of Trade BOc2 increased 83,21 cent per share on Friday, or increased 4,5 percent that day. It was the top one. As quoted from Reuters, the price increased almost 50% in this year.
Indonesia as the biggest palm oil producer and exporter in the world, planned to stop palm cooking oil materials and palm cooking oil to be the solution on the expensive palm cooking oil. But the policy triggered to increase food inflation in other countries.
Analysis of Oil World in Hamburg, Siegfried Falk said, this is bad for vegetable oil consumers in many countries for they depend on palm oil and they are lack of sunflower oil, soybean oil, and canola oil.
Siegfried Falk also said, the policy makers in Indonesia decided the policy to muffle domestic food price inflation but triggered inflation in other countries
As a matter of fact, many concerned about food inflation after Russia invaded Ukraine as the main exporter of wheat, corn, barley, sunflower, and canola.
United Nation Food and Agriculture Organization reported that food price increased almost 13% in March which was the latest highest record. (T2)