“Shock” from food export bans

In the context of the world facing a shortage of Food Security due to call Russia-Ukraine conflict, supply disruptions and inflation, countries have taken measures to ensure the supply of food and food in the country. Most notably, many countries have introduced bans on agricultural exports, but this has further tightened the scarce supply in the global market.

This week, the international market has witnessed positive signals, when Indonesia – the world’s leading palm oil exporter officially re-supply this product since May 23. President Joko Widodo pledged that the country’s move would help stabilize cooking oil prices in both the domestic and export markets.

“Currently the price of cooking oil is still relatively high, but I believe that in the next few weeks, an abundant supply will help the price become more balanced,” said Indonesian President Joko Widodo.

Illustration – Photo: Bloomberg.

However, the situation has not improved much in other commodities as many export bans are still maintained. According to CNBC, currently, nearly 20 countries have issued bans on the export of food and food items in order to prioritize domestic supply.

Most recently, India temporarily halted wheat exports. India is a country that is promoting wheat exports, so the export ban has dealt a blow to the market, which is already struggling due to supply cuts from Ukraine and Russia. India’s wheat exporters themselves also suffered significant losses.

Mr. Dashrath Singh Khangrot – Gandhidham Transport Association, Gujarat State, India said: “There are currently up to 5,000 trucks carrying wheat waiting at Kandla port for more than 10 days. The sudden ban has made businesses The export and transportation industries both suffer losses of millions of Rupees every day.

Southeast Asia is also feeling difficulties from tight supply. Malaysia on May 23 announced the suspension of the export of more than 3.6 million chickens due to high domestic prices. Accordingly, Singapore – the country that imports most agricultural products from Malaysia is having to speed up the search for alternative sources from the global market.

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