Understanding Low FFB Prices in Pesisir Selatan

Palm Oil Magazine
Doc. Palmoilmagazine.com

PALMOILMAGAZINE, JAKARTA – According to Novermal Yuska, a member of the Pesisir Selatan (Pessel) Legislators, there are four reasons behind the occurrence of low-priced fresh cheap fruit bunches (FFB) in the district.

Firstly, there is a limited number of mills in the area. Secondly, the FFB yield from Surantih to Lunang Silaut is not considered as a single factor when determining its price.

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Thirdly, the direct and indirect costs associated with milling are not subject to audit. Finally, there is no FFB team decision established by the District of Pessel to regulate independent smallholders’ FFB production, similar to what West Sumatera Province has done for setting plasma smallholders’ FFB price.

“Data from Agriculture Agency of Pessel, palm oil plantations laid about 41 thousand hectares of smallholders and 36 thousand hectares of companies/those that got Business Rights,” he recently said to Palmoilmagazine.com, Friday (28/7/2023).

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The plantations in Surantih, Lengayang, Ranah Pesisir, and Linggo Sari Baganti that laid about 10 thousand hectares, there is no mill at all though one party got its permit to construct it, but it is not yet.

Prior, FFB of plasma smallholders in West Sumatera Province that FFB team decided on 22 – 31 July 2023 was Rp 2.452 per kg as the most expensive for the 10 – 20 year old FFB. (T2)

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