Indonesia is the world's biggest palm oil producer.But its "unpredictable" export policies may help Malaysia become the main supplier to India, the world's top buyer of the product.The oil comes from a palm tree that is only grown in the tropics.Palm oil is used primarily for cooking in developing countries.It is also used in food, beauty, and cleaning products.Last month, Indonesia announced a ban on the sales of palm oil to other countries.President Joko Widodo said in a statement on April 27 that the ban would be lifted once local demand was met and prices lowered.Malaysia is the world's second-largest palm oil producer with less than half of Indonesia's output.Shortly after Indonesia announced its ban, Malaysia positioned itself to become a major supplier of palm oil by cutting the export tax by half.The trade group Solvent Extractors' Association of India estimates that the two events could lower Indonesia's share of the palm oil exports to India to 35 percent by October of 2022.
