West Sumatra has increased its official fresh fruit bunch (FFB) price by IDR 72.76/kg for the first pricing period of August 2026, with the benchmark for 10–20-year-old oil palm plantations exceeding IDR 4,000/kg amid firm CPO and palm kernel reference prices.
PALMOILMAGAZINE, PADANG — The West Sumatra Fresh Fruit Bunch (FFB) Pricing Committee has raised the official benchmark price for oil palm FFB during the August 1–7, 2026 pricing period. The price for 10–20-year-old plantations increased by IDR 72.76/kg from the previous period to IDR 4,045.02/kg, according to the committee meeting held in Padang on August 4.
Based on the official pricing minutes issued by the West Sumatra Provincial Food Crops, Horticulture and Plantation Agency, FFB prices continue to be determined according to plantation age and serve as the reference for transactions involving cooperatives and company-partnered smallholders across the province.
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For younger plantations, the benchmark prices were set at IDR 3,166.29/kg for three-year-old palms, IDR 3,348.70/kg for four-year-old trees, IDR 3,549.05/kg for five-year-old plantations, IDR 3,664.63/kg for six-year-old palms, IDR 3,810.25/kg for seven-year-old trees, and IDR 3,952.60/kg for eight-year-old plantations.
Meanwhile, FFB prices were fixed at IDR 4,032.71/kg for nine-year-old palms and peaked at IDR 4,045.02/kg for plantations aged 10–20 years. Prices then declined for older trees, with 21-year-old palms priced at IDR 3,885.57/kg, 22 years at IDR 3,879.45/kg, 23 years at IDR 3,821.17/kg, 24 years at IDR 3,643.97/kg, and 25 years at IDR 3,605.02/kg.
The committee also set the reference crude palm oil (CPO) price at IDR 15,578.31/kg, palm kernel at IDR 14,833.61/kg, and palm shell at IDR 17.84/kg. The K Index, which determines the revenue-sharing formula between mills and growers, was maintained at 93.75%.
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The benchmark prices will be used as the basis for FFB payments to cooperatives and smallholders partnering with palm oil companies throughout West Sumatra during the current pricing period. (P3)
