In a positive development Indonesia, the world’s biggest palm oil producer, has consented to send early shipments of palm oil to Pakistan.
Ten shipments of edible oil from Indonesia and Malaysia will reach Pakistan within two weeks, sources said. The first ship with 30 thousand metric tonnes of edible oil cargo will leave for Pakistan today. It is to be mentioned here that Prime Minister Shehbaz Sharif and Indonesia’s President Joko Widodo in a telephonic conversation on June 10, had agreed to expand and deepen mutually-beneficial cooperation in all fields.
The prime minister underlined Pakistan’s desire to further promote trade and investments between the two countries. It was agreed that both sides will closely coordinate on ensuring the steady import of palm oil. A business delegation on the instructions of the prime minister visited Indonesia and held successful talks with the country’s Ministry of Commerce. Pakistan’s Minister for Industries and Production Murtaza Mehmood led the talks with Indonesian authorities.
Indonesia will provide 2,50,000 metric tonnes of the edible oil to Pakistan under an agreement. Indonesian Ministry of Commerce on the request of Pakistani delegation facilitated rapid completion of the formal procedures, sources said.
Pakistan’s trade delegation also comprised of Chairman Vanaspati Menufacturers Association Tariqullah and another member Rasheed Jan.
Indonesia’s decision to suspend palm oil exports in April this year in the face of domestic shortages has pushed vegetable oil prices to new highs in the world, further tightening a market already on edge due to the war in Ukraine and global warming.
The prices of palm, soybean, European rapeseed and even its Canadian GMO counterpart, canola oil, have reached historic highs following Indonesia’s announcement. Palm oil is the most consumed vegetable oil in the world, and Indonesia accounts for 35 percent of global exports, according to James Fry, chairman of LMC consulting firm.
Indonesia’s export ban was designed to bring down prices in the country and limit shortages, according to authorities.INP