Smallholders’ FFB is Cheaper than Rp 2.000/kg: The Government Should Monitor

Smallholders’ FFB is Cheaper than Rp 2.000/kg: The Government Should Monitor

InfoSAWIT, JAKARTA - Serikat petani Kelapa Sawit (SPKS) mentioned, after crude palm oil (CPO) and its derivative export ban was revoked on 23 May 2022, fresh fruit bunch (FFB) produced by the independent smallholders is never better again before the ban. Their FFB where SPKS operates in 10 provinces and 14 districts on 14 June 2022 is mostly getting cheaper.

Here are FFB price lists produced by the independent smallholders in where SPKS operates which was published on 14 June 2022:  In West Sulawesi, District of Mamuju Tengah was decreasing to be Rp 1.700/Kg; in District of Sanggau and Sekadau, West Kalimantan it was Rp 2.000/Kg and Rp 2.220/Kg – got cheaper Rp 100/Kg and Rp 180/Kg; In Central Kalimantan, District of Seruyan and Kotawaringin Barat (Kobar) it was Rp 1.650 and Rp 1.700, decreased Rp 100/Kg in Kobar; in East Kalimantan, District of  Paser it was still Rp 1.700/Kg; in Riau, District of Rokan Hulu it was Rp 2.000 or got cheaper Rp 450/Kg, Siak it was Rp  1.700/Kg or got cheaper Rp 350/Kg, in Kuansing it was Rp 1.920/Kg or got increasing Rp 100/Kg; in North Sumatera, District of Labuhan it was Rp 1.500/Kg or got cheaper Rp 400/Kg; in Jambi, District of Tanjung Tabung Barat it was Rp 1.500/Kg or decreased Rp 710/Kg; in South Sumatera, District of Musi Banyuasin (Sub district of Lalan) it was Rp 1.400/Kg or decreased Rp 200/Kg; in West Sumatera, District of Pasaman Barat it was Rp 1.970/Kg or decreased Rp 270/Kg; in Aceh, District of Aceh Utara it was Rp 1.800/Kg or decreased Rp 200/Kg.

Head of Member and Organization Division, SPKS, Sabarudin said, the independent smallholders’ FFB price where SPKS operates per 13 June 2022 was mostly decreasing about Rp 1.00 – 450/Kg from the numbers decided on 1 June 2022 that SPKS monitored. The numbers are less than those with what plantation agency in province level decided, and from what SPKS calculated, the disparity could be about Rp 1.000 – 1.700/Kg from the FFB price in some provinces, which is, Rp 2.500 – 3.300/Kg.

“Besides the cheap FFB selling price in some mills in some regions where SPKS operates, the mills also limited to purchase the independent smallholders’ FFB by saying that the tank storages are full; the mills claimed, they are difficult to do export because of the latest regulation published by Ministry of Trade,” Sabarudin mentioned, as in the official statement to InfoSAWIT, Tuesday (14/6/2022).

Chairman of SPKS District of Seruyan, Arif Mansur Rosyadi told that the cheap FFB produced by the independent smallholders would impact to their plantation productivity. It would be difficult for them to purchase the expensive fertilizers.

“The fertilizers get more expensive about 50 – 70 percent. Let us say, fertilizers that the smallholders used are NPK. It is about Rp 540.000/sack. Urea is Rp 520.000/sack, KCL is Rp 930.000/sack,” he said.

The independent smallholder from Village of Belutu, District of Siak, Riau Province, Ridwan, said, the FFB price in this week got cheaper compared to the previous week in the early of June which got increasing once. The fertilizer has been significantly increasing about 70 – 80 percent. He told, NPK is Rp 900.000/sack, urea Rp 960.000/sack, KCL is Rp 860.000/sack.

Facing the expensive fertilizers, the smallholders mostly reduce the fertilization rotation and doze for every tree. For example, if the smallholders bought fertilizers in normal price, the fertilizer would be reaching 1,5 kilogram per tree. But if the fertilizers are expensive, they would reduce the doze to be 1 kg per tree.

“If the normal doze could produce 1 ton per harvest per hectare per month, after the doze reduction, they would get only 600 kilogram per harvest per hectare per month,” Ridwan told.

Chairman of SPKS District of Mamuju Tengah, Irfan said, his fellows in the district massively demonstrated in front of the offices of Regent of Mamujy Tengah, the Legislators and some mills for the cheap FFB which is about Rp 1.100/Kg if compared to what province decided according to the Regulation of Minister of Agriculture Number 1 / 2018.

SPKS hoped, Ministry of Agriculture would monitor FFB price decision based on the regulation both for the plasma and independent smallholders because there is no supervision and monitoring for these years. There should be sanctions for the companies (mills) that purchased smallholders’ FFB price cheap. “We suggested that the monitoring would not be in the mills but in the middlemen, loading ramps, and scales as well because the independent smallholders mostly sold their production to the sides,” Sabarudin said. (T2)