InfoSAWIT, JAKARTA – After President Joko Widodo banned crude palm oil (CPO) and its derivative export by the late of April 2022, CPO price at Malaysia Exchange once increased to be RM 7.104/ton. This was a shock for the traders after the decision.
As the result, the people of Indonesia could enjoy Idul Fitri 1443 Hijriah safely and well. Bulk palm cooking oil and packaged one are now easily found in the society.
It means, CPO and its derivative export ban needs review to deliver justice for the people namely the smallholders.
From what InfoSAWIT knew, in some palm oil plantation centers, fresh fruit bunch (FFB) selling price got much cheaper up to 40% from what local plantation agencies decided. This happened for the abundant CPO stocks in the temporary storages of many mills.
The sources of InfoSAWIT from palm oil plantation companies informed that they were difficult to sell CPO to many markets. “The main reason that our CPO buyers told is that they are difficult to sell their CPO because palm cooking oil is abundant in this country while the exports are banned still,” the unnamed company told to InfoSAWIT.
The company mentioned, many companies need helps from President Joko Widodo to revoke the ban as fast as possible. If not, some mills planned to stop producing because the storage tanks are full.
Besides having full storage tanks, some mills are worried that the quality of CPO would be not good anymore for being too long in the storage tanks. “The quality of CPO could be broken if it is kept for too long in the storage tanks,” the company explained.
On the other hand, the mills which do not maximally produce, stop buying FFB from the smallholders. As a matter of fact, FFB they produced is their main source of income. If this keeps going on, the mills are worried that the smallholders would boycott in this very short. “Do not let the smallholders be the victims. If they would not harvest their plantations, do not nurse their trees, theirs would be in trouble for not being able to produce and they would be getting much worse,” the company said.
It is hoped that the government should take partisanship with the smallholders who have fought for nursing their plantations. “Do not let the mill stop operating and producing for there is no place to storage their CPO,” the company mentioned.
According to Malaysia Exchange on (6/5/2022), CPO selling price was at RM 6.400/ton or US$ 1.460/ton. It significantly got decreasing compared to the late of last month which was reaching US$ 1.643/ton.
The cheaper CPO that reached US$ 183/ton could be the strong signal for the smallholders that it would be getting much cheaper in the future. President Joko Widodo should immediately revoke the ban. “The smallholders are not fighting for their life for not being able to buy expensive fertilizers,” the company mentioned. (T1)