Indonesia plan to centralize palm oil exports raises fears of supply disruption
In Indonesia, Reuters reported that Indonesia’s move to channel palm oil exports through a central agency could disrupt supplies of the world’s most traded edible oil, concentrating pricing power and potentially boosting exports from Malaysia.
President Prabowo Subianto recently said the government will require exports of palm oil, coal and ferroalloys to go through a state agency, as it seeks to tighten control over natural resources and boost state revenue, according to the report.
Indonesia accounts for more than half of global palm oil shipments. Its past export-restricting moves to prioritize local sales and boost supplies for biodiesel have lifted prices of palm oil as well as rival edible oils like soyoil and sunflower oil, the report added.
Category: Food & Agriculture
