Smallholders Under Pressure for FFB Prices

Smallholders Under Pressure for FFB Prices

Photo by : Hendra / Sawitfest 2021

Palmoilmagazine, JAKARTA – Since 22 April 2022, the smallholders’ fresh fruit bunch (FFB) has been in fluctuation and decreasing.

Chairman of Asosiasi Petani Kelapa Sawit Indonesia (Apkasindo), Gulat ME Manurung said, it gets decreasing to the cheapest price.

For example, on 23 - 30 April 2022, the independent smallholders’ FFB price got decreasing 58,87% while the plasma ones got decreasing about 25%. “The worse is that in the province where there is no governor’s regulation as the derivative Regulation of Minister of Agriculture Number 1 / 2018, smallholders’ FFB got decreasing up to 65% compared to what local plantation decided,” he said.

Though after Lebaran holidays, it got increasing once, but it was not too significant. On 8 May, in general in many provinces, it got decreasing but it was better before Lebaran holidays.

“The independent smallholders got worse price than the plasma ones. The average price in 8 provinces that have had governor’s regulation, was Rp 1.931/Kg, while in the provinces that have no governor’s regulation, it was only Rp 1.775/kg,” he recently said to Palmoilmagazine.

This meant, the mills do not care about the Regulation of Minister of Agriculture and governor’s regulation about FFB price decision. Manurung continued, every mill decided the price based on their analysis though according to Regulation of Minister of Agriculture, FFB price was decided by agriculture agency in the province level.

“In fact, plasma and independent smallholders got the impact. The uncertain situation got stronger from crude palm oil (CPO) tender at KPBN since 24 April to 9 May which ended to failed tender; there was no price agreement. Many companies that bid CPO was much cheaper than what KPBN offered. Of course, this caused smallholders’ FFB price much cheaper,” he said.

He hoped, the smallholders should not get the burden for the exports keep running (unless they are banned). That is why to end the turbulence, the smallholders joining Apkasindo asked palm cooking oil producers to fulfill and realize what President Joko Widodo instructed and the export ban would immediately be revoked by the President.

Data exposed by PT Perusahaan Perdagangan Indonesia (PPI) showed that since 27 April, 12 million liters of palm cooking oil were distributed to the society. Bulk and premium palm cooking oil get much cheaper.

“Every problem has its solution if every side works together – the smallholders, the corporates, and the government. Do not burden everything to us,” he said. (T2)


READ MORE ON GOOGLE NEWS. or Let's join the Telegram group "Palm Oil Magazine", click the link, and join. You must first install the Telegram application on your android.