Indonesia: Are palm FFB prices still falling because of etrepreneurs?

Published 2022년 7월 25일

Tridge summary

The price of crude palm oil (CPO) has slightly increased, while the price of fresh fruit bunches (FFB) of oil palm at the farmer level has not. Despite exports reaching 2.97 million tons in June and 1.3 million tons from July 1-23, palm oil mills are reluctant to buy at a higher price, leading to a decrease in FFB prices. The government has exempted the export levy of the Palm Oil Plantation Fund to zero to accelerate exports and reduce the abundance of CPO supply, expected to improve the price of FFB. A temporary program will implement 35% biodiesel by the end of July 2022 to absorb the supply of CPO from the domestic market.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Jakarta, CNBC Indonesia - The price of crude palm oil (CPO) began to creep up. However, this increase has not been followed by an improvement in the price of fresh fruit bunches (FFB) of oil palm at the farmer level. CPO prices rose slightly in the early trading session on Monday (25/7/2022). Launching Refinitiv, at 09:46 WIB, CPO price was traded at MYR 3,736/ton or up 0.43%. Today's CPO price is much better than in mid-July where CPO touched the level of MYR 3,500 per tonne. Meanwhile, based on the Plantation Office of East Kalimantan Province (Kaltim), the price of oil palm FFB for the period 1-15 July 2022 is set at Rp 1,614.20 per kg for a 3-year-old plant. The price of FFB for a 5 year old plant is set at Rp 1,732.14 per kg. The price continues to decrease compared to that set on 16-30 June 2022. During that period, oil palm FFB for a 3-year plant age is IDR 2,070.34 per kg while for t-year it is IDR 2,221.50 per kg. The chairman of the DPP of the Indonesian Palm Oil Farmers ...

Source: Cnbcindonesia