13 Sep 2016
The farmers therefore asked for the benchmark price of Fresh Fruit Bunches (FFB) to only be set in palm oil producing districts. Not anymore in the provincial level
"So far the benchmark price of FFB is indeed determined at the provincial level. But in practice in the field, there are always differences in price of up to IDR500/kg. This had been very detrimental to farmers," said Secretary General of the Indonesian Oil Palm Farmers Association (Apkasindo) Asmar Arsjad on Friday (9/9) in Medan.
The setting of the benchmark price in the area, said Asmar, had actually been conveyed to the government. But their reply was unclear, resulting in the benchmark FFB price still being determined at the provincial level to date
This actually is quite detrimental to farmers because price could not be determined based on production in the palm oil producing areas but, rather, by capital owners accommodating farmers' FFB.
Asmar exemplified that this week the FFB benchmark price was set at IDR1.950/kg. But farmers only received the price of IDR1.500/kg.
The difference amounting to IDR450/kg certainly made farmers incurred losses, especially since production was not very good. "The government is expected to consider the setting of the benchmark price in the district level," he said
The Head of Apkasindo Simalungun Kamaludin Purba said the benchmark FFB price was indeed always determined by the related departments every Wednesday of the week in the province. But, since there were many agents or delivery holders (OD) the price received by farmers had always been below the benchmark price.
The Palm Oil Mill (PKS), he said, indeed did not want to directly accept FFB from farmers. The requirement was to go through an OD holder.
"Such a practice has actually been going on for a long time in fact. Farmers are used to it now. Therefore, farmers could only hope for the price to go up, so that they can get more rupiah," he said. (elvidaris simamora)
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