FFB Got Cheaper, The Smallholders Should Pay Mandatory Cut

Foto by Adi Saputra/SawitFest 2021
FFB Got Cheaper, The Smallholders Should Pay Mandatory Cut

InfoSAWIT, PANGKALAN KERINCI – Quoting from a proverb, when it rains, it pours, this is happening to many smallholders in palm oil plantation regions in Indonesia, including in District of Pelalawan, Riau Province.

In this district, their fresh fruit bunch (FFB) price keeps getting cheaper and cheaper for the past several months.

“Besides, their FFB percentage should be cut off more than three percent. What they got is not maximal,” an unnamed smallholder in Pelalawan told to InfoSAWIT, Tuesday (21/6/2022).

He said, of dozens mills in the district and around, there are few only that do not cut off mandatory cut or zero (0) percent. The mandatory cut always takes place in loading ramps too.

As a smallholder, he and his fellows have no power to fight for the mandatory cut which more than 2,5 percent.

They have no bargaining position because the mills cannot buy their production because what the central government published really makes a mass for the smallholders’ production and governance.

Here are FFB price lists in District of Pelelawan which is available since Tuesday (21/6/2022) for the next few days:

1.PT Musim Mas, it is Rp 1.760/kg for super quailed FFB

2.PT Sri Indrapura Sawit Lestari (SISL), it is Rp 1.530/kg for big FFB

3.PT Multi Palma Sejahtera (MPS) it is Rp 1.490/kg

4.PT Inti Indosawit Subut (IIS) it is Rp 1.510/kg for big FFB

5.PT Sinar Siak Dian Permai (SSDP), it is Rp 1.540/kg

6.PT Guna Usagari Pratama (GUP) it is Rp 1.490/kg

7.PT Vintorindo Alam Lestari (VAL) it is Rp 1.670/kg for big FFB

8.PT SPS it is Rp 1.440/kg 

9.PT Anugerah Tani Makmur (ATM) Maredan it is Rp 1.770/kg for super qualified FFB

10.PT Berlian Inti Mekar (BIM) it is Rp 1.460/kg

11.PT Persada Agro Sawita (PAS) it is Rp 1.440/kg

Disclaimer: the price is from the delivery order transaction in the mills, not the price in the plantations. The cut is based on the mandatory percentage and could change after sorting in the mills. (T5)