Record Highest, Palm Oil Price In Riau Reaches IDR 4,183.51 Per Kilogram

JAKARTA - The price of fresh fruit bunches (FFB) of oil palm in Riau for plants aged 10-20 years has reached a record high of IDR 4,183.51 per kilogram (kg). The trigger, the increase in the price of refinitive CPO is priced at the Malaysian ringgit (MYR) 6,554 per tonne, up 4.46 percent.

"The price of crude palm oil (CPO) rose again on Monday, March 7 trading," said Head of the Processing and Marketing Division, Plantation Service (Disbun) of Riau Province, Defris Hatmaja, quoted by Antara, Tuesday, March 8.

He said, but after a few minutes of trading the CPO price cut its increase to 3.11 percent to MYR 6,471/ton.

Malaysia's benchmark CPO price has soared 45 percent in 2022 to a record high, coupled with export restrictions by major CPO producer Indonesia and disruption of sunflower oil supplies due to the Ukraine conflict.

"CPO producers must continue to face higher operational costs, especially because the supply of fertilizers that depend on petrochemical sources that use petroleum as their base material is also increasing," he said.

Analysts say that uncontrolled commodity prices have caused CPO producers such as Indonesia and Malaysia to delay biodiesel production and decide to adapt to the market situation.

He explained, the price of oil palm FFB for the period 9-15 March 2022 in 2022 experienced an increase in each oil palm age group with the largest increase occurring in the 10-20 year age group of IDR 252.57 per kg or reaching 6.43 percent of the price. last week. So that the purchase price of FFB farmers for the next one week period rose to Rp 4,183.51 per Kg.