FMCG companies such as Hindustan Unilever Limited (HUL), Britannia Industries, Godrej Consumer Products, and Marico have been down up to 6 per cent on the Bombay Stock Exchange in intra-day trade. On 28 April 2022, Indonesia announced to ban the export of palm oil used for cooking oils, processed foods, cosmetics and biofuels.
On BSE, the shares are down between 4 per cent to 6 per cent of Hindustan Unilever (HUL), Britannia Industries, Godrej Consumer Products, and Marico. In the Monday morning trade, the S&P BSE FMCG index was down 1.7 per cent compared to a 1 per cent decline in the S&P BSE Sensex.
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In the annual report, Indonesia meets nearly 45 per cent of the total palm oil supplied to India. As per media reports, exports have been halted to check the soaring domestic prices of palm oil, creating unrest in the country. India imports around 13-13.5 million tonnes of edible oil every year, of which approximately 8-8.5 million tonnes (around 63 per cent) are palm oil.
“If monthly supplies of around 300,000-325,000 tons of palm oil stop from May onwards, it will cause a sharp escalation in edible oil prices, which have already been on the boil due to ongoing Russia- Ukraine crisis,” media reported.
