Edible oil prices could rise by 15-20 percent due to shortage of supply as Indonesia, the world's top palm oil producer, bans palm oil exports effective April 28, 2022. "The suspension of export by Indonesia will result to increase [in prices] of edible oil by about 15-20 percent in Kenya but [if] the ban extends, we expect [it] to jump to over 30 percent [next month]," said John Muriuki, a Mombasa-based palm oil dealer.
Indonesia, which accounts for more than half of global palm oil supply, has announced plans to ban exports of the product which is most widely used to manufacture vegetable oil. This comes just a few months after sunflower oil supplies in India were affected by the Ukraine-Russia war, adding pressure to household budgets. Indonesian President Joko Widodo last Friday announced the suspension of all cooking oil and raw material exports in the wake of a severe shortage and skyrocketing prices for edible oil. Palm oil is used in manufacturing various products ranging from cakes, frying fats, vegetable oil, cosmetics and cleaning products.