India faces major setback in edible oil trade
India, which is a major exporter of many grains such as rice and wheat, lags far behind in production and exports of edible oils.
India is 50% dependent on Indonesia for palm oil consumption.
Indonesia recently banned the export of palm oil.
Not only India but also countries like Bangladesh and Pakistan have been severely affected.
Bangladesh and Pakistan get 80 percent of their palm oil demand from Indonesia.
This is a bit of a consolation as only the export of refined palm oil is banned.
Indonesia does not ban the export of crude palm oil.
India now relies solely on Malaysia as an alternative to Indonesia.
But Malaysia's production and exports are so low that they can not fully meet the needs of the world.
Ukraine, the world's largest exporter of sunflower oil, is currently at war and unable to export.
Argentina bans soybean oil exports.
The country has taken this decision due to low domestic yields.
According to economists, this decision will affect Argentina, along with other countries in the world.
This is because Argentina has so far received 32 percent tax revenue from soybean oil exports.
That tax revenue is currently affected by this export ban.
Even though countries like Brazil and the United States export vegetable oil, importing vegetable oil from there is very costly.
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