Indonesia Bans Palm Oil: The common man is going to be hit by inflation. There is an indication of a further increase in the prices of edible oil because Indonesia has decided to stop the export of edible oil, especially Palm Oil, from April 28. This decision of Indonesia is going to have an impact on India as well.
India is the largest importer of edible oils, and imports 50-60 per cent of its edible oil (palm oil). This decision of Indonesia is going to have an effect because India imports more than 50 per cent of its requirement of palm oil from Indonesia itself. The Indonesian government has taken this decision to control the rising prices in the domestic market.
Not only this, but the war between Russia and Ukraine has also seen an increase in the prices of sunflower and soybean oil. Russia-Ukraine is one of the largest sunflower and soybean oil-producing countries in the world.
Due to the impact on the supply of palm oil, the oil prices in the domestic market may be affected. The edible oil market is dominated by Adani Wilmar and Ruchi Soya. Therefore, both these stocks are seeing a steady rise. It is being speculated that both these companies are going to benefit from the increase in the prices of edible oil.
The stock of Adani Wilmar has been continuously engaged in the upper circuit for the last several days. The stock has gained about 25 per cent in the last 5 days.
Shares of Adani Wilmar closed at Rs 843.30, up 5 per cent on Wednesday. There is a trend of bullishness in this stock only after listing. Adani Wilmar has the largest holder of the Indian edible oil market..
Apart from this, the shares of Ruchi Soya have also continued to rise for the last few days. Despite selling in the market, shares of Ruchi Soya Industries continued to rise on Wednesday. At the end of trading, the stock jumped about 7 per cent and closed at Rs 1104.
The stock of Ruchi Soya has lost about 16 per cent in the last 5 days. Its highest level of the last 52 weeks is Rs 1,377, which it touched on 9 June 2021. Ruchi Soya is the company of Yoga Guru Baba Ramdev.
Ruchi Soya has 3 lakh hectares of land for palm cultivation. Out of 3 lakh hectares, 56,000 hectares of land is under cultivation. The company has a market share of 12 per cent in branded palm oil.