JAKARTA, Reuters – Indonesia’s trade Minister said Wednesday that he expects prices for cooking oil to stabilize after a program of subsidizing supplies reaches 10,000 places across the country.

On Tuesday, the trade ministry launched a program that allowed low-income families to purchase up to 2 litres of cooking oils per day for 14,000 rupees ($0.95/litre). According to Trade Minister Muhammad Lutfi, the programme was in 1,200 locations by Wednesday. It is expected that it will reach 2,500 by the week’s end.

The government of Indonesia suspended exports to crude palm oil from April 28th. This was in an attempt to curb rising prices for cooking oils.

Lufti indicated that affordable cooking oils at home are a precondition for discussions on easing the ban on exports.

Lutfi added that by reaching 10,000 sites across Indonesia as soon as possible, we could stabilize (cooking oil availability) in Indonesia. This would make up around 60% to 70%, of Indonesia’s total market.

“We are hopeful that we will achieve stability quickly and can then talk about relaxation of export restrictions,” he said.

According to government officials, the export ban on palms will be lifted if bulk cooking oils prices drop below 14,000 Rupiah per unit nationally. Ministry data revealed that the average price for a litre was 17.200.

Indonesia is the world’s largest exporter of palm oil. Its decision to cease exports shocked the global vegetable oil market, which had seen large amounts of sunflower oil cut off by the conflict in Ukraine.

A rally was held in Jakarta on Tuesday by hundreds of palm oil producers demanding that the ban on exports be lifted. As storage tanks at the mills were full, and palm fruit began being stopped from refiners’ hands, the problem became more serious.

($1 = 14,685.0000 rupiah)