Kwame Wiafe, the Managing Director of Wilmar Africa Limited, which produces Frytol, has urged the government to prohibit the export of crude palm oil (CPO) to reduce Ghana’s supply risk.
The ban, when implemented, will ensure local processors have access to the raw material for their work.
Speaking to Citi Business News, Mr Wiafe said ,”many local plantations prefer to sell their Crude Palm Oil outside of the country, where they can earn better rates, rather than local refineries like us.” As a result, I had to go outside and bring in the stock at a greater cost because around 60% of locally produced Crude Palm Oil was being exported. In terms of the current CPO ban, it is being implemented in nations such as Ivory Coast and Indonesia. Because of the current global scenario, some countries are taking actions to ensure food security for themselves.”
“So the government could decide that in the meantime, in order to mitigate the supply risks, CPO exports should be banned. This will enable the refiners in the country to get some stock to mitigate the risk that will emanate from this ban,” he added.
According to stakeholders in the Crude Palm Oil business, the present ban on the product’s export by other countries such as Indonesia necessitates Ghana (a net importer of Crude Palm Oil) to take action to protect its domestic stock.
If not lifted, Indonesia’s restriction on palm oil exports, which began on April 28, 2022, to address the country’s persistent cooking oil scarcity, is projected to be particularly harsh on sectors producing consumer goods in Ghana and other parts of Africa, such as cooking oil, detergents, and snacks.
Because Ghana is a net importer of palm oil, any pressure from the prohibition will put a strain on the supply chain, driving up costs and limiting availability.
According to available statistics, Ghana bought about 400,000 mins of palm oil in 2019 for domestic consumption and export of refined oil and by-products.
Because of the large disparity in numbers, some stakeholders in the crude palm oil industry have warned that if the ban on the export of palm oil from Indonesia is not lifted soon, supply disruptions for cooking oil and imported crude palm oil on the Ghanaian market will occur within the next 2 to 3 months.