New Delhi: Indonesia has decided to lift ban on its palm oil export from Monday, according to a report by Reuters.


The development came as there are improvements in the domestic cooking oil supply situation, Indonesia’s President Joko Widodo on Thursday said.


According to the report, Indonesia, the world's top exporter in palm oil, has halted shipments of crude palm oil (CPO) and some derivative products since April 28 in a bid to tame soaring prices of domestic cooking oil.


In a video statement, President Widodo said that the decision comes despite bulk cooking oil having not yet receded to the targeted 14,000 rupiah per litre price, as the government considers the welfare of 17 million workers in the palm oil industry.


He said the supply of bulk cooking oil has now reached a level greater than what the domestic market needed.


"Average price of (bulk) cooking oil before the export ban in April was 19,800 rupiah per litre and after the ban the average price dropped to around 17,200 to 17,600 rupiah per litre," the president said.


Indonesia banned the exports of vegetable oil, which is widely used worldwide, as a means of controlling domestic prices. However, pressures have been mounting to ease the process as farmers protested saying there were no demand for their palm fruits.


Apart from Indonesia, the ban has rattled global vegetable oil markets, including India, that were already struggling after the Russia-Ukraine war created a disruption which removed a big chunk of sunflower oil supply.


Earlier, Indonesia had struggled to control prices and secure local supplies since December. They came up with a raft of measures ranging from price caps, to export restrictions, and cash handouts for households and hawkers. But all that failed to pull down prices to the government target of 14,000 rupiah (97 US cents) per litre of bulk oil. The surging costs helped push inflation to a three-year high in April.


Palm oil makes up more than a third of the world's vegetable oil market, with Indonesia accounting for nearly 60 per cent of palm oil supply.