By Rajendra Jadhav

MUMBAI, (Reuters) – The Indonesian government’s stricter palm oil export ban has prevented at least 290,000. tonnes of edible oil from reaching India through ports and mills located in Indonesia, according to four industry experts.

Officials said that the disruption caused by Indonesia’s expanded export ban, which now includes crude and refined palm oils, will cause a shortage of vegetable oil in India. According to them, Malaysia is the second largest exporter and faces increasing demand. It is asking for fast shipments at near record prices.

“Our vessel of 16,000 tonnes is stuck at Kumai port in Indonesia,” said Pradeep Chowdhry, managing director of Gemini Edibles & Fats India Pvt Ltd, which buys around 30,000 tonnes of Indonesian palm oil every month.

“We do not know when Indonesia will lift this ban. We are confident that stuck shipments will be delivered.”

India is the biggest palm oil importer in the world, and almost half of its 700,000-tonne monthly intake comes from Indonesia.

Malaysian buyers are urgently looking for products, however Kuala Lumpur is unable to meet the demand. Sandeep Bajoria (chief executive at Sunvin Group), a consultancy and vegetable oil broker, stated that they have seen buyers rush to buy from Malaysia.

He said that Malaysian sellers must fulfill their previous commitments. They cannot supply palm oil to expedite shipments.

Nearly 60% of world vegetable oil shipments are made from palm oil. Top producer Indonesia exports around one-third of the total vegetable oil.

DOUBLE WHAMMY

India imports nearly two thirds of its vegetable oils. New Delhi had been banking on palm oil following the halt in sunflower oil supply from Ukraine, top exporter.

A Mumbai-based trader with a global brokerage firm stated that palm oil traded at a substantial discount to sunflower and soyoil earlier in the month. This prompted Indian buyers increase their purchases of palm oil for loading in May.

He stated, “This quantity is now fixed because of Indonesia’s surprise move.”

Black Sea countries are responsible for 60% of the world’s sunflower oil production, and 76% for exports. While Indonesia and Malaysia account a large portion of worldwide palm oil shipments, The United States and Argentina are major soyoil producers.

There would be a shortage on the market. Govindbhai Ptel, the managing director at trading company G.G. said that there is no way to raise supplies. Patel & Nikhil Research Company.

Patel stated that India’s prices could rise because of limited supplies and strong demand for next month due to weddings or festivals.