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We still suffer despite end of export ban: Palm oil farmers
Farm gate prices remain low after the government revoked its palm oil export ban, while surging fertilizer prices have driven up production costs, smallholders say.
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Palm oil farmers protest on May 17 outside the Office of the Coordinating Economic Affairs Minister in Jakarta to demand an end to the ban on palm oil exports. The export ban went into force on April 28 and was lifted on May 23. (Reuters/Willy Kurniawan)
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arm gate prices remain low and have even been dropping in some areas, two weeks after the government revoked its palm oil export ban, smallholders say.
Data from the Palm Oil Farmers Union (SPKS) shows that the price of fresh fruit bunches (FFB) remains mostly below Rp 2,000 (14 US cents) per kilogram. In contrast, local plantation agencies put the average figure at around Rp 3,500 per kg.
However, on average, independent smallholders in Sumatra, Kalimantan and Sulawesi receive barely half of the average price set by local agencies, which is a nonbinding reference price.
Before the export ban, farmers in some areas could charge Rp 4,000 per kg or more.
SPKS research and technology head Sabarudin told The Jakarta Post on Tuesday that prices had risen somewhat since the ban was lifted, although the increase had been very limited. In some places, smallholders have seen a decrease after the initial slight rise.
“During the ban, we saw prices drop at an alarming rate. Now, after exports resumed, the increase has been too slow,” Sabarudin said.
Read also: Govt approves 1 million tons of CPO for export
