Palm oil FFB prices rise after tighter government oversight

Padang, West Sumatra (ANTARA) - Agriculture Minister Andi Amran Sulaiman said around 90 percent of palm oil companies have raised the prices of fresh fruit bunches (FFB) paid to farmers following the government's intensified trade supervision.

“FFB prices have increased. Previously, around 80–85 percent of companies had adjusted their prices, and now the figure is close to 90 percent. However, we are still investigating companies that have yet to make adjustments,” he said in a statement on Thursday.

According to Sulaiman, government efforts to protect millions of palm oil farmers are beginning to deliver positive results. Following interventions by the Ministry of Agriculture, supported by the National Police Food Task Force, FFB prices in several regions have started to recover and move closer to the prices set by regional authorities.

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

The measures were introduced after FFB prices declined sharply despite rising global crude palm oil (CPO) prices and a stronger US dollar.

Sulaiman said the development demonstrates the government's swift response in overseeing palm oil pricing. Previously, around 270 companies were found to be purchasing FFB below prevailing market prices. That number has now fallen to approximately 130 companies.

He emphasized that the government’s efforts extend beyond restoring prices. Continuous monitoring will be conducted to ensure that the recent improvement in farmer-level prices is sustained and that no unjustified price declines occur in the future.

The monitoring measures are also intended to protect the livelihoods of approximately 15 million palm oil farmers who depend on the commodity as a primary source of income.

Earlier, the government warned hundreds of palm oil companies that had not aligned their FFB purchase prices with prevailing market conditions.

The Ministry of Agriculture, together with the National Police Food Task Force, also carried out inspections and monitoring of companies suspected of purchasing FFB below appropriate market prices.

With more companies adjusting their purchase 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 and improve the welfare of farmers who form the backbone of Indonesia’s palm oil industry.

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Translator: Muhammad Harianto, Resinta Sulistiyandari

Editor: Primayanti

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