Superior Palm Oil Seed Prices Rise: Driven by Growing Demand and Production Costs

Palm Oil Magazine
Illustration of Palm oil seeds. Photo by: Sawit Fest 2021 / Muhammad Fadlan

PALMOILMAGAZINE, JAKARTA – The demand for superior palm oil seeds in Indonesia has risen significantly, driven by the increasing needs of independent smallholders participating in the replanting program and rising production costs.

Masrizal Batubara, Chairman of the Himpunan Produsen Benih Perkebunan dan Kehutanan Indonesia, stated that the price of superior palm oil seeds ranges from Rp 50,000 to Rp 55,000 per tree. In certain regions, such as Ketapang Regency in West Kalimantan, the price can reach Rp 60,000 per tree, particularly for high-quality varieties like D x P Dami Mas, known for its resistance to Ganoderma disease.

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“Superior palm oil seeds have seen a significant increase in demand, with some breeders reporting that their stocks are pre-ordered before distribution,” Batubara said in an official statement to Palmoilmagazine.com on Friday (10/11/2024).

Also Read: The Symbiotic Relationship Between Palm Oil Plantation Development and Research-Driven Downstream Industries

Chandra Rika Herlin, a palm oil seed breeder in Muara Enim, South Sumatra, confirmed this trend, noting that seeds in the area are priced around Rp 50,000 per tree. In Lampung, the DxP Sriwijaya variety is sold for Rp 55,000 per tree, according to Agus, Director of CV Hikmat Tani.

The same thing happened in Riau. Sri Kembaren, a marketer of CV Putra Agung, said that DxP Topaz was sold at Rp 50.000 per tree while the variety from Pusat Penelitian Kelapa Sawit (PPKS) Medan was sold at Rp 47.000 per tree.

In Bengkulu. Sabam Sihite, a palm oil seed breeder as the partner of PT Sampoerna Agro, reported that DxP Sriwijaya in the region was sold at Rp 47.000 per tree, the semi-colon variety was sold at Rp 50.000 per tree. Sihite said that most of the seeds have been ordered by some palm oil plantation companies.

Jon Juli Candra, the owner of CV Sidonata Jaya Mandiri in the Regency of Lamandau, Central Kalimantan Province said that DxP Sriwijaya and DxP Simalungun in the regency were sold at Rp 55.000 per tree. In South Kalimantan, Riyan, the owner of breeding location in Martapura, said that DxP Sriwijaya was sold at Rp 50.000 per tree.

Maya Rangkuti, the owner of CV Dharma Nusantara suggested to adjust palm oil seed price in the smallholders replanting program that Palm Oil Plantation Fund Management Agency funded. She thought, the price difference between governments’ programs and the market could make the breeders reluctant to provide palm oil seeds in the replanting program. Besides, the slow progress in replanting program could make the breeders uncertain and the seeds prepared would always be out of the worthy planted.

“We have smallholders’ groups in North Sumatera that waited for about two years to get technical recommendation. The seeds that we prepared in replanting program, are over the age and they cannot be distributed anymore,” Maya said. (P2)

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