INDONESIA, one of the major palm oil producers in the world, announced a ban on the export of palm oil in April 2022 – a move that proved to be a turning point for Thailand.
Before the ban, Thailand was just a minor supplier of crude palm oil (CPO) to India.
The move however proved to be a blessing in disguise after Thailand’s share of exports to India soared to 11.65 percent from November 2021 to October 2022 from 1.37 percent in the previous year.
Indonesia and Malaysia remain major palm oil suppliers to India but the ban further increased Thailand’s share to 15.24 percent in the first six months of the oil year starting from November 2022.
Based on the latest US Department of Agriculture report, Thailand was forecasted as the third largest exporter of palm oil between 2022-2023 with approximate shipments at nine million tonnes.
The country’s exports of the product also account for less than 2 percent of the global palm oil trade.
According to the Commerce Ministry, Thailand’s crude palm oil exports may reach one million tonnes this year, driven by a higher supply of oil palm and strong demand from India and China.
