Adani Wilmar jumps, Fmcg stocks slump after Indonesia bans palm oil export

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Shares of edible oil makers rose on Monday after Indonesia’s ban on palm oil exports shocked global edible oil markets, which have already hit record prices this year, and sparked alarm among the main importers of the cooking medium. The country is the world’s largest producer of palm oil.

While Adani Wilmar Ltd rose by 3.68% to Rs 755.00 while Raj Oil Mills Ltd gained nearly 10% to Rs 75.25. Agro Tech Foods Ltd rose more than 2% and Gokul Agro Resources Ltd traded 5% higher.

However, Patanjali-owned Ruchi Soya Industries, India’s largest edible oil maker, fell 1% to Rs 948.60.

Palm oil is the most widely used vegetable oil in the world and is used in the manufacture of many products, including cookies, margarine, laundry detergents and chocolate.

The blow is severe for India, which is the world’s largest importer of edible oils, particularly the largest importer of palm oil and soybean oil. While soybean oil hit a record high of Rs 83.21, up 50% year-to-date, palm oil rose 34% year-to-date while canola oil was up 15%.

Sunflower oil supplies in India have already been affected due to the war between Ukraine and Russia, which has increased pressure on household budgets.

Even before the news broke, edible oil prices were trading at their highest ever – about 45% higher than their previous highs recorded in 2008 and then 2011.

Frontline stocks like Hindustan Unilever (HUL), Britannia Industries, Godrej Consumer Products and Marico fell 4-6% on BSE. At 09:30; the S&P BSE FMCG index fell 1.7%, compared to a 1% drop for the S&P BSE Sensex index.

First post: STI

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