INDIA’S vegetable oil importers see an “ugly” supply crunch if Indonesia maintains its palm oil export ban to meet domestic demand.

India, the biggest importer of edible oils in the world, is already facing a tough time due to the Russia-Ukraine war, which has disrupted sunflower oil supplies.

Indonesia, the top palm oil producer in the world, last month imposed a ban on palm oil exports to cool local cooking oil prices, making India more reliant on Malaysia, the second biggest producer.

India imported 1.78 million tonnes of palm oil from Malaysia and 1.15 million tonnes from Indonesia between November and April, according to Mumbai-based Solvent Extractors’ Association of India (SEA).

The trade group said the ban may be lifted before May-end, but the “situation will turn ugly” if it continues as supplies from other origins are not enough.

India has sought to make up for the shortfall from the Indonesian move and Ukraine crisis by buying other edible oils.

SEA said the country’s sunflower oil demand has dipped due to high global prices and reduced availability.

There has been no shipment from Ukraine since March 27, it added.

India’s total edible oil imports fell 14.4% to 900,085 tonnes in April compared with March.

Its palm oil imports from Malaysia totalled 313,859 tonnes last month, of which 277,024 tonnes are crude palm oil, 28,835 tonnes are RBD palm olein and 8,000 tonnes are crude palm kernel oil. – Bernama, May 14, 2022.