Not only the Smallholders, The Mills Panic by Hoping to Get CPO Export

Doc. InfoSAWIT
Not only the Smallholders, The Mills Panic by Hoping to Get CPO Export

InfoSAWIT, JAKARTA – After the government stopped banning crude palm oil (CPO) and its derivative export on 28 April 2022, until now there is no sign that the policy would be revoked. Palm cooking oil supplies are abundant and according to the latest situation, it gets cheaper.

Many mill owners do panic now because CPO stocks in many storage tanks are full. Most of the mills slow down their production and do not buy the smallholders’ fresh fruit bunch (FFB) because of overcapacity.

Indonesian Planters Society (IPS) told that not only the smallholders panic, but the mills get the same. One Chairman of IPS, Darus Salam told, the mills’ storage tansk are now full of CPO.

Not only that the mills are difficult to sell their CPO because many buyers postpone and wait for the export ban policy. “The storage tanks are now full. The smallholders and the stakeholders do panic namely because CPO buyers postponed to buy it,” he said to InfoSAWIT, Wednesday (11/5/2022).

By the condition, Salam continued, some mills do not buy FFB namely from the independent smallholders. “The most extreme is that many palm oil plantations stop buying FFB from the third sides to keep cultivating their main plantations,” he said.

Chairman of IPS, Jamalul hoped the government now revoke CPO export ban so that the stakeholders and smallholders could operate their plantations, just like it was before. (T2)