PALMOILMAGAZINE, PEKANBARU – Fresh fruit bunch (FFB) prices for independent oil palm smallholders in Riau recorded a significant decline during the June 3–9, 2026 pricing period, reflecting softer conditions in the crude palm oil (CPO) market.
According to the latest pricing decision issued by the Riau Provincial Independent Smallholder FFB Pricing Team, the benchmark price for nine-year-old oil palm plantations dropped by IDR437.44 per kilogram to IDR3,271.91/kg compared to the previous period.
The correction highlights the sensitivity of smallholder FFB prices to movements in downstream palm oil commodities, particularly CPO, which remains a key component in the pricing formula.
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For the current period, CPO prices were set at IDR12,872.00/kg, while palm kernel prices reached IDR13,431.91/kg. Palm shell values were recorded at IDR26.09/kg, with the K index established at 92.87 percent.
Data from the Riau Plantation Agency showed that FFB prices varied across plantation age categories. Three-year-old palms were priced at IDR2,541.03/kg, while four-year-old and five-year-old plantations were valued at IDR2,829.24/kg and IDR3,031.63/kg, respectively. Prices for six-year-old palms reached IDR3,146.91/kg.
Meanwhile, plantations aged seven and eight years were priced at IDR3,218.17/kg and IDR3,256.58/kg, respectively. The highest price during the period was recorded for nine-year-old plantations at IDR3,271.91/kg.
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For the key productive age group of 10 to 20 years, FFB prices were set at IDR3,240.05/kg. Older plantations saw lower values, with 21-year-old palms priced at IDR3,187.66/kg and 22-year-old palms at IDR3,126.75/kg.
FFB from 23-year-old plantations was valued at IDR3,057.46/kg, while prices for 24-year-old and 25-year-old palms reached IDR3,004.86/kg and IDR2,961.88/kg, respectively.
For mature plantations beyond 25 years of age, prices continued to decline gradually, with 26-year-old palms priced at IDR2,946.34/kg, 27-year-old palms at IDR2,922.48/kg, 28-year-old palms at IDR2,877.11/kg, 29-year-old palms at IDR2,843.64/kg, and 30-year-old plantations at IDR2,767.13/kg.
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Despite the sharp week-on-week decline, FFB prices for most productive plantation categories remained above IDR3,200/kg, providing a degree of support for smallholder earnings. Market participants remain hopeful that a recovery in global CPO prices and stronger vegetable oil demand will help stabilize FFB prices and improve farmer returns in the coming weeks. (P3)
