Seoul to strengthen the monitoring of cooking oil supplies

SEOUL, May 18 (Yonhap) – South Korea will step up its monitoring of the cooking oil market and support its supply chains amid concerns over supply shortages and illegal hoarding, the Ministry of Agriculture said Wednesday. agriculture, food and rural affairs.

Global cooking oil prices have recently increased due to the Ukrainian crisis and Indonesia’s export restrictions, prompting some consumers here to stock up. Large discount food chains and online malls have therefore imposed limited purchases of cooking oil for each shopper.

In a meeting with the Ministry of Agriculture, major domestic suppliers of cooking oil, including CJ CheilJedang Corp. and Lotte Foods Co., said they are not seeing a shortage at this time, securing a two to four month warranty. for the cooking oil broth. They should also receive contractual quantities of palm oil and other types of edible oils from abroad smoothly.

Since the end of April, Indonesia, the world’s largest exporter of palm oil, has suspended shipments of cooking oil due to low domestic supplies. But the measure did not directly affect the market here, as South Korean companies bought palm oil from Malaysia, according to the ministry.

As for sunflower oil, the companies have obtained replacement foreign suppliers, other than Ukraine and Russia, following the war in the region, he added. Ukraine is the world’s largest exporter of sunflower oil, accounting for nearly 50% of the total global supply, followed by Russia, which produces around 23%. The current crisis has also disrupted shipments of petroleum products and raised world prices.

“The companies said they have no plans to raise cooking oil tariffs. Consumers here are unlikely to have a problem buying it, “the ministry said in a statement.

However, as cooking oil is critical for small traders and people’s daily lives, the government has pledged to closely monitor the supply situation with interested companies during a weekly meeting and also plans to step up the monitoring potential illegal hoarding while looking for ways to support importers in the face of rising world prices.

According to foreign media, vegetable oil prices recently hit an all-time high. Palm oil tariffs nearly tripled after Indonesia imposed an export ban.

Nationwide, the price of cooking oil has also increased recently, from 511 won ($ 0.4) per 100 milliliters in January to 515 won in February and 530 won the following month, according to Korea data. Consumer Agency (KCA).

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