Farmers Expect Oil Palm FFB Prices To Be Normal After CPO Exports Open

Farmers transport oil palm FFB (ANTARA/Dedi)

PONTIANAK - Chairman of the Association of Smallholders Palm Oil Plantation (ASPEKPIR) West Kalimantan, Marjitan hopes that the price of fresh fruit bunches (FFB) of palm oil can quickly return to normal when the implementation of the export of crude palm oil (CPO) is opened.

"The government has lifted the ban on CPO exports and exports will reopen on Monday, May 22, 2022. Hopefully, with this policy, the price of palm FFB at the farmer level, which had fallen, will return to normal," he said in Pontianak, reported by Antara, Sunday, May 22.

He explained that the price of palm oil, especially at the farmer level, was IDR 2,000 per kilogram when the ban on the export of CPO and its derivatives was enforced. However, with the lifting of the ban on CPO exports, farmers are excited again and hope to increase the price of these commodities.

"CPO exports are reopened, so the price of palm FFB at the farmer level is expected to return to normal. That's what we are monitoring. At this time, farmers are grateful and excited again," he explained.

With the price of palm oil returning to normal, the enthusiasm of farmers to plant or cultivate will also increase, either through programs promoted by the government in the form of Palm Oil Rejuvenation (PSR) or independently.

"We predict that the need for seeds ready for distribution will certainly increase with the passion for palm oil getting better," he said.

Although the ban on CPO exports has been lifted, it is hoped that the government will continue to pay attention to farmers regarding fertilizers and herbicides.

"There is one thing that the government needs to pay attention to, namely the high price of fertilizers and herbicides. The high price causes the maintenance costs to increase. This can reduce the exchange rate of farmers or farmers' income," he said.

Previously, President Joko Widodo through his official statement on Thursday (19/5/2022) said that the faucet for exporting CPO and cooking oil would be reopened starting May 23, 2022.

Regarding the price of palm FFB, in the price-fixing meeting at the West Kalimantan Disbunak on May 17, 2022, the FFB price benchmark that must be followed and becomes the reference for every PKS for the FFB they buy from oil palm planters in West Kalimantan. The highest price of palm FFB is IDR 3,628.78 per kilogram aged 10-20 years. Meanwhile, the lowest price was IDR 2,710.35 per kilogram of palm oil aged three years.