MEDAN - The price of crude palm oil (CPO) fell again to Rp6,599 per kg on July 6, 2022 due to the impact of weakening demand from abroad.
"CPO prices continued to fall, especially in July. On July 1, the price was still Rp. 7,957 per kg and continued to fall until July 6," said Executive Secretary of the North Sumatran Indonesian Palm Oil Association (Gapki), Darma Sucipto, as quoted by ANTARA, Wednesday, July 6. .
The price of CPO continued to fall, as on July 4 and 5 to Rp. 7,775 and Rp. 7,250, respectively, until July 6, it was only Rp. 6,599 per kg.
According to him, the decline in CPO prices was the impact of weakening demand in the midst of a large domestic stockpile.
The large stock was, among other things, the impact of the delay in exports due to the ban on the sale of the product to secure the domestic price of cooking oil.
"According to trade law, prices have fallen because Indonesia's crude palm oil stocks are high, while demand is slowing," said Darma.
The impact of falling CPO prices will automatically have an impact on the price of fresh fruit bunches (FFB) for palm oil.
The price of FFB at the manufacturer ranges from only Rp. 1,276 to Rp. 1,644 per kg according to the determination of the Production Price Determination Team for Partnering Smallholders.
Chairman of the Indonesian Palm Oil Farmers Association (Apkasindo) Mandailing Natal, North Sumatra, Aflan Qadafi Nasution said the price of FFB at the manufacturer was only Rp. 1,100 per kg.
"Farmers complain that the selling price of FFB continues to fall," he said.
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