Minister reports higher FFB prices by 90 percent of palm oil firms

Padang, West Sumatra (ANTARA) - Agriculture Minister Andi Amran Sulaiman stated that around 90 percent of palm oil companies have offered higher fresh fruit bunch (FFB) prices paid to farmers following the government's tighter trade supervision.

"The price of palm oil FFB has increased, by 80-85 percent, perhaps 90 percent now. However, we are still investigating those that have not revised the price," he noted in a statement on Thursday.

According to him, government measures aimed at safeguarding millions of palm oil farmers are showing positive results. After interventions carried out by the Ministry of Agriculture with support from the National Police's Food Task Force, FFB prices in several regions have begun to rebound and move closer to prices determined by regional authorities.

The price improvement occurred after the Ministry of Agriculture held at least three intensive meetings with business players, associations, and representatives of oil palm farmers to ensure FFB prices at the farmer level reflected actual market conditions.

This step was taken following the recent plunge in FFB prices, which were deemed inconsistent with the rise in global crude palm oil (CPO) prices and the strengthening of the US dollar.

Sulaiman considered this development demonstrates the government's swift action to monitor palm oil prices. Previously, around 270 companies were found to have kept FFB prices below prevailing market levels. That figure has now fallen to approximately 130 companies.

Furthermore, he emphasized that government efforts will extend beyond restoring prices. Ongoing monitoring will be carried out to ensure that the recent improvement in farmer-level prices is sustained and that prices do not experience further unjustified declines.

These monitoring measures are also part of efforts to safeguard the welfare of the approximately 15 million palm oil farmers who depend on this strategic commodity for their livelihood.

Earlier, the government issued a warning to hundreds of palm oil companies that had yet to align their FFB prices with prevailing market conditions.

The Ministry of Agriculture, together with the National Police's Food Task Force, also conducted monitoring and inspections of companies suspected of purchasing FFB below the appropriate price.

With more companies aligning their prices and supervision continuing to be strengthened, the government remains optimistic that the recovery in FFB prices will spread more evenly across palm oil-producing regions while improving the welfare of farmers who form the backbone of Indonesia's palm oil industry.

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Translator: Muhammad Harianto, Resinta Sulistiyandari

Editor: Azis Kurmala

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