JOURNAL MONITOR VOL.2 NO.5 : PALM OIL IS PRO-POOR EDIBLE OILS
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Palm oil is a pro-poor edible oils, that is characterized by the price of palm oil which is always lower than other edible oils, its own elastic price more inelastic, and its elasticity of income more elastic.
In the global edible oil market, palm oil acts as a buffer or damper against excessive price increases for other edible oils (soybean oil, rapeseed oil and sunflower seed oil). This condition very beneficial for the edible oil consumers in the world, especially countries with low-income levels or poor countries, cause they can afford edible oils. This palm oil’s role of possible due to its more competitive price, relatively large volume, and stable supply throughout the year, as well as has substitute relationship with other edible oils.
Palm oil derivative products in the form of food and non-food products such as hygiene products, and toiletries (soap, detergents, and cosmetic products) can fulfill the needs of poor or lower-income people. This is because these products are relatively affordable for them because the product price is cheaper and the availability of products are quite a lot. The implication is that the poor people can fulfill their basic needs, so that their quality of life can improve and the SDG-1 (No Poverty) will be realized.