With Indonesia banning exports of palm (edible) oil amid severe shortage, the shares of Indian edible oil companies have come into focus, surging up to 9 per cent on the BSE intraday amid a positive demand outlook.
Last week, Indonesia had announced an export ban on palm oil from April 28, 2022, amid severe shortages and rising prices. Indonesia is the world’s largest supplier of edible oil, used in everything from cakes and frying fats to cosmetics and cleaning products, processed foods as well as in biofuels.
Read More:-BBTC, Auto Ancillary to Tata Investment – here are the top Buzzing Stocks today
Edible oil major Ruchi Soya Industries gained almost 9 per cent to touch day’s high of Rs 1030.45 per share on the BSE. While Ajanta Soya, Modi Natural Products and Gokul Agro each hit an upper circuit of 5 per cent on the BSE. The first two are near a 52-week high and Gokul Agro hit a new high today.
Similarly, Manorama Industries and Agro Tech Foods each gained around 2 per cent to Rs 1283.30 and Rs 873.70 per share, respectively on the BSE
Indonesia typically supplies nearly half of India’s total palm oil imports, according to a Reuters report. It further added, “In India, the world’s biggest vegetable oil importer, palm oil prices rose by nearly 5 per cent over the weekend as industry prices in shortages in the coming months.”
Read More:-EPFO Update: Know all about UAN, step-by-step guide to know UAN number
Zee Business Correspondent Ambarish Pandey quoting sources reported that the government is monitoring edible oil prices and a meeting has been called this week to review the same, wherein in all stakeholders, including edible oil producers, importers, FMCG companies will be present.
This week the government will discuss the trade with ministers of Indonesia and Malaysia, Pandey also said in his report quoting sources.
Read More:-Airtel Payments Bank launches FD facility in partnership with IndusInd Bank -Check interest rates
He added, “The government estimates not to increase prices immediately as well as negotiations are on with many producing countries for supply and orders have been already placed for additional imports from Russia, Argentina.”
