InfoSAWIT, MUMBAI – Vegetable oil price which gets increasing since February 2022 because of geopolitical situation and crude palm oil (CPO) materials and palm cooking oil export ban from Indonesia could be decreasing up to 15% in June 2022.
Chief Executive Officer dan Managing Director Adani Wilmar, Angshu Mallick said, vegetable oil price hit the top and would be better in next June and the rests. Its price could be decreasing about 10 – 15%. Besides Indonesia should revoke palm oil export ban on 10 May 2022.
As quoted from Financial Express, Adani Wilmar got increasing average price at 30-35% for vegetable oil which ended on 31 March. The material cost consumed in the past three months until March 2022 got increasing 40% compared to the previous year to be Rs 13.666 crore. “In the full year which ended in March, the material increased 49% compared to last year in the same period to be Rs 48.214 crore,” he said.
Mallick also mentioned, the war between Russia and Ukraine made deficit vegetable oil stock, and Indonesia which banned palm oil export. “I think, the peak is over. Now the price would be decreasing for there is no bad news anymore,” he said.
He also predicted Indonesia is the biggest producer in the world while the domestic needs are smaller than the export. It means, Indonesia would not storage the stocks for too long for it is lack of bulking storage.
The bulking storage in Indonesia could only be for 7 – 15 days. If there is no export, the bulking storage would not be available anymore. “I think, on 10 May, Indonesia should export CPO and the price would be decreasing for there is no reason left to get expensive price,” he said.
India should fulfill its annual vegetable oil for more than 55% from the import, both in crude or processed one. Palm oil import in India reached 7,2 million tons per year from Indonesia and Malaysia in 2021 – 2022. 5,4 million tons in the form of crude palm oil (CPO). (T2)