SINGAPORE (Reuters) – U.S. President Joe Biden’s green fuel push using edible oils is helping drive up vegetable oil prices that are already near record highs, hitting key cost-sensitive consumers in India and Africa and stoking global food inflation fears. The United Nations’ vegetable oils price index has rallied 70% since last June to nine-year highs after labour shortages at Asian palm plantations and bad weather in key sunflower, rapeseed and soybean hubs pinched edible oil output and cut inventories to 10-year lows. The run-up in edible oil prices has helped fuel a rise in the UN’s broader food price index to its highest since 2014, stinging consumers in developing countries and posing a challenge to policymakers trying to spur economic growth. (Graphic: Edible oils lead the charge as global food prices push to multi-year highs: ) A steep recovery in edible oil demand as consumers and businesses restocked following COVID-19 lockdowns has exacerbated the tightness, as has Biden’s election win and promised ‘Clean Energy Revolution’ that looks set to ignite biofuel demand. “There’s been a new factor which has come after the election of President Biden that has projected higher demand for soyoil, which is 100% biodiesel,” leading edible… continue reading
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