The Palm Scribe

Farmers encouraged to build cooperatives

Bisnis Indonesia, 30 July 2018

The government is urged to issue a policy to control fresh fruit bunches (FFB) price amid the current oversupply in production. Indonesian Oil Palm Farmers Union (SPKS) Chairman Mansuetus Darto said that the FFB price offered to smallholder farmers varies from Rp600 and Rp700 per kg to Rp1,250 per kg. Meanwhile, the price offered to plasma farmers is higher at Rp1,400 per kg. The different prices occurred in several palm oil production centers. He attributed the price difference to price manipulation by palm oil mills and middlemen. Middlemen cut the price by Rp300 to Rp400, which is deemed a scheme created with palm oil mill, Mansuetus said on Friday (July 27). Mansuetus suggested the government remove the index K proportion imposed on farmers, smallholder farmers should join a cooperative, and the FFB price should only apply for Tenera.

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