Explained: Why Indonesia ban and not Ukraine war is India's biggest problem

India is expecting a potential crisis as edible oil prices are set to skyrocket with Indonesia putting an export ban on palm oil. Along with high oil prices comes higher spending on daily food and other utility items. Editorji explains why Indonesia is now a bigger problem for your pockets than the Ukraine war:

How big is Indonesia in the palm oil market?

The nation is the top producer of the commodity with a large monopoly in the export market. Indonesia and Malaysia make up over 85% of the total global supply. The world annually consumes around 240 million tonnes of edible oils, of which almost 80 million tonnes is palm oil. Of this almost 50 million tonnes comes from Indonesia.

What is palm oil really used for?

50% of products the average urban Indian uses daily contain palm oil. Palm oil is used as the most common cooking medium (Vanaspati) and its derivatives are used in various forms from chips and instant noodles to toothpaste, lotions, lipsticks, and other personal care and cosmetics.

How is India impacted?

India is the world's largest palm oil importer and consumer, heavily dependent on Indonesia to meet about 60 percent of its annual edible oil imports which is close to 8 million tonnes. Palm oil accounts for nearly 40 percent of India’s overall edible oil consumption basket. In the last 12 months, palm oil prices have gone up by 50 percent; and nearly tripled over the last two years.