This is the Reason Palm Cooking Oil Prices are Expensive

This is the Reason Palm Cooking Oil Prices are Expensive

Photo by : Wahyu Karbadi / Sawitfest 2021

Palmoilmagazine, JAKARTA – Chairman of Keluarga Alumni Institut Pertanian (KAINSTIPER), Priyanto PS said, the expensive CPO in the globe delivered distortion in many palm oil plantations, such as, the increasing price of production infrastructures, vegetable fuel which increased CPO production cost. In short, every increasing CPO price in the world, it increases CPO production costs in Indonesia.

As the result, windfall profit in palm oil plantation should keep going on to pay the fertilizers, vegetable fuel, and other production infrastructures in expensive price. Besides, the mill which directly has something to do with the people’s life namely the smallholders, should buy smallholders’ fresh fruit bunch (FFB) production in expensive price or at least, it is adjustable with CPO price globally, based on the regulation of Ministry of Agriculture, through the local plantation agency.

“It means, not many companies can enjoy every windfall profit from the increasing CPO selling price but it will be divided into CPO production supply chain,” he said as in the official statement to Palmoilmagazine, Wednesday (11/5/2022).

That is why every government officer should understand CPO business. The understanding should be well distributed on palm oil trade. Every increasing price in the globe would directly have something to do with production costs, impacts to the increasing palm cooking oil price nationally. It needs to understand to know every block in palm cooking oil procurement in the society.

The market distribution network – from the mill to distributors, big agents, small agents, small shops, and micro and small business – should be put in data and the needs should be well performed. Palm cooking oil needs in fasting days would be increasing because many impromptu sellers do sell in the fasting days. “The needs would massively be increasing namely in fasting days and Idul fitri,” he said.

If the increasing leap of palm cooking oil needs, namely from the impromptu sellers and small business, is well known, the housing needs would be easily fulfilled because CPO production in the domestic would be able to fulfill the needs in the society though it highly increases.

“By having massive capacity of mills and palm cooking oil factories, palm cooking oil needs in this country would be fulfilled. The major issues are at the market needs, trade mechanism, economic selling price. The government should get the data and immediately improve these,” he said. (T1)


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