Agriculture Ministry probes 300 palm oil firms over FFB prices

Jakarta (ANTARA) -

Minister of Agriculture Andi Amran Sulaiman announced that around 300 palm oil companies will be investigated for failing to increase fresh fruit bunches (FFB) prices despite market conditions that should have supported higher prices.

"There are approximately 300 companies out of a total of 1,900 operating in the palm oil sector. We will investigate these 300 companies and determine why they have not increased their prices as expected," he said in a press statement on Monday.

The ministry has reported the companies to the National Police Food Task Force as part of efforts to monitor palm oil firms that have not adjusted their FFB purchasing prices at the farmer level.

"This will be investigated immediately. There will be no immediate sanctions because the matter must first go through an inspection process. We will send the letter today, and the investigation will begin," the minister said

Sulaiman noted that the inspection process is necessary to identify the reasons behind the companies' failure to adjust prices.

The government emphasized that the measure is intended to ensure that farmers receive fair prices in line with prevailing market conditions.

Authorities also expressed hope that all companies would promptly comply with the collective agreement to restore FFB prices in order to safeguard the welfare of oil palm farmers.

The minister said that FFB prices vary across regions.

"If the price is Rp3,200 (US$0.17) per kilogram, it should remain at that level, depending on the region. It must comply with the Governor's Regulation," he said.

On Monday, Sulaiman chaired a coordination meeting on efforts to develop and stabilize palm oil FFB prices at the Ministry of Agriculture.

The meeting was attended by representatives of palm oil associations, farmer groups, exporters, the National Police Food Task Force, and other relevant stakeholders.

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Translator: Muhammad Harianto, Resinta Sulistiyandari

Editor: Primayanti

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