President of the Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Mr. Paul-Kwabena-Amaning,is calling for promotion of a resilient and thriving oil palm sector.

According to him, the oil palm sector has broader implications on the economy, including price stability, exchange rate stability and generation export revenues from the sector.

Paul Amaning said the inability to address food supply conditions could in the long run jeopardise the Central Bank's mandate of price stability.

He opined that food inflation is driven by oil Palm demand.

Since May 2021, the inflation data have pointed to gradual increase in food prices, and this trend has intensified in recent months on the back of the recent Russian-Ukraine crises. Food inflation hit 30.1% in May 2022, significantly up from 5.4% in May 2021.

Paul Amaning stated that because of the Russia-Ukraine production of sunflower and other vegetable oil has reduced-thus there is high demand in tropical oil like palm oil and coconut which has led to the increase of raw materials which has affected palm oil production.

"Increase demand of Fresh fruit bunches which has led increase in the cost of production affecting prices of crude palm oil thereby affecting palm oil-related commodities in our super market and shops. E.g., vegetable oil sold 98 cedis in 2017? is 480 cedis plus today all because there is high demand of Crude Palm Oil pushing the price up, “Mr. Paul-Kwabena-Amaning he told the media.

He called on government to invest more in production of palm oil which will help reduce the high cost of raw materials in oil palm sector.

According to him, further insights in the data reveals faster acceleration of food inflation, relative to non-food inflation.

Therefore, the inability to address food supply conditions, he said, could in the long run jeopardises the Central Bank's mandate of price stability.

Source…. www.sompaonline.com/Richard Obeng Bediako