The Smallholders’ FFB in Covid-19 Pandemic is Always Decreasing

The Smallholders’ FFB in Covid-19 Pandemic is Always Decreasing

InfoSAWIT, JAKARTA – After the corona virus (Covid-19) pandemic spreads in Indonesia, it influences the fresh fruit bunch (FFB) price produced by the smallholders. It gets cheaper and cheaper as same as the decreasing price of the crude palm oil (CPO) in the world.

Head of Processing and Marketing Result of Plantation Agency, South Sumatera Province, H. Rudi Arpian said that the FFB price in the province keeps getting cheaper. It is the cheapest one in the second period – May 2020 which is only Rp. 1.285,97/Kg, while the most expensive one in 2020 took place in the second period in January 2020 reaching Rp. 2.022,29/Kg.

He said that the Covid-19 pandemic also makes the crude palm oil (CPO) production nationally decrease 0,9% in the same time when the domestic consumption decreases about 3,2%. “This is the same with the cheaper price of CPO CIF Rotterdam – from US$ 722/ton in February 2020 to be about US$ 636/ton in March 2020,” he said through Whatsapp to InfoSAWIT recently.

The export volume also gets decreasing 16,5 %. Rudi said that this happened for the CPO importer countries do lockdown policy to stop the spread of Covid-19.

He also mentioned that the Covid-19 pandemic interrupts the industries, namely in the plantation one. There is no other way to survive except making efficiency namely in the production costs.

“Palembang would do big scale social distancing, limitation to work in the office – working should not more than 5 hours per shift. We do hope that there would be exception in palm oil factories and crumb rubber factories to work up to 7 to 8 hours. The work limitation would influence to the operational in the factories, the purchasing and uploading FFB produced by the smallholders that may spend much time,” Rudi said. (T2)


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