NEW YORK: Indonesia’s decision to suspend palm oil exports in the face of domestic shortages has pushed vegetable oil prices to new highs, further tightening a market already on edge due to the war in Ukraine and global warming.

The prices of palm, soybean, European rapeseed and even its Canadian GMO counterpart, canola oil, have reached historic highs following Indonesia’s announcement on Wednesday.

“We already had problems with soybeans in South America, with canola in Canada,” said Philippe Chalmin, an economics professor at Paris-Dauphine University in France, stating that both crops had been severely affected by extended droughts.

Then came devastation for the “sunflowers in Ukraine” due to Russia’s destructive invasion, he added. Palm oil is the most consumed vegetable oil in the world, and Indonesia accounts for 35 per cent of global exports, according to James Fry, chairman of LMC consulting firm.

Published in Dawn, May 1st, 2022