Asia commodities export curbs in 2022
Governments across Asia implemented export curbs on various agricultural and energy products this year to ensure sufficient supplies and cap a rise in prices due to the Russia-Ukraine war, but these measures have disrupted global trade.
Here is a summary of the commodities affected this year.
JANUARY: INDONESIAN COAL
* World’s top thermal coal exporter Indonesia imposed a month-long export ban on Jan. 1 due to concerns over low supplies for domestic power plants.
* The move hit Indonesia’s exports, snared shipments to top buyers such as Japan and caused prices to surge.
* By end-January, the government gradually eased the export ban for companies that met a Domestic Market Obligation (DMO), or local market sales requirement, aimed at preventing any future supply crunches and power outages.
* In August, Indonesian legislators pressed the government to tighten rules on domestic coal sales, amid concern that miners will choose to pay fines to export for higher profits instead of meeting a requirement to sell a quarter of their output to local power generators.
APRIL: INDONESIAN PALM OIL
* World’s top palm oil exporter Indonesia imposed a three-week export ban on edible oil and related products between April 28 and May 23 to tame soaring local prices and improve domestic cooking oil supplies after the Ukraine conflict disrupted sunflower oil exports from Kyiv.
* Prior to the full ban in April, the government had already started to curb palm oil exports from January.
* Jakarta lifted the ban but imposed DMO requirements for exporters.
* Industry experts had urged authorities to ease export restrictions and taxes, including removing the DMO, as producers have been struggling with high inventories since the introduction of the export ban.
* Most recently, the government started waiving palm oil export levies from mid-July to Oct. 31 to help encourage exports and prop up prices of palm oil fruits for farmers.
MAY: INDIAN WHEAT
* India banned wheat exports on May 14, in a surprise move days after the government maintained a target export volume of 10 million tonnes to compensate for Ukraine’s reduced supply, as a scorching heat wave curtailed output and domestic prices hit a record high.
* While the ban is still in place, the government has since allowed some wheat shipments to avoid the damage of products still lying at ports by monsoon rains.
MAY: INDIAN SUGAR
* India has imposed restrictions on sugar exports for the first time in six years by capping this season’s exports at 10 million tonnes, a government order said, to prevent a surge in domestic prices after mills sold a record volume on the world market.
* India is set to allow sugar exports in two tranches for the next season beginning in October, as the world’s biggest producer of the sweetener tries to balance the interests of its farmers and consumers, government and industry officials told Reuters.
AUGUST: MALAYSIAN CHICKEN
* Malaysia halted exports of live chickens starting June 1 in an effort to stabilise output and domestic prices, after a global feed shortage triggered by the war in Ukraine disrupted production.
SEPTEMBER: INDIAN RICE
* India banned exports of broken rice and imposed a 20% duty on exports of various grades of rice on Sept. 8 as the world’s biggest exporter of the grain tries to augment supplies and calm local prices after below-average monsoon rainfall curtailed planting.
* Rice loading has stopped at Indian ports and nearly one million tonnes of grain are trapped there as buyers refuse to pay the government’s new 20% export levy on top of the agreed contract price.
Source: Reuters (Reporting by Matthew Chye in Singapore; Additional reporting by Rajendra Jadhav in Mumbai and Fransiska Nangoy in Jakarta; Editing by Jacqueline Wong)