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THE FRUIT PRICE DECREASES, THE FARMERS SHOCK

18 September 2015 , 06:58 WIB | Read : 836 | By : Ignatius Ery Kurniawan

the recent decreasing palm oil fruit price in many regions becomes an interesting phenomenon. no one knows why it decreases and in the same time, the crude palm oil (CPO) price does too. it becomes the boomerang for the farmers.

The decreasing CPO price is suspected by many sides as the factor to the decreasing palm oil fruit price. But, the question remains, if the fruit price is decreasing as Rupiah decreases towards Dollar, why does it drastically decrease in this year?

Based on what InfoSAWIT has traced in many regions, the farmers’ selling fruit price mostly decreases. The price has the most dangerous distortion in the last five years.

The selling fruit price is as same as the decreasing CPO price in international markets. Based on the InfoSAWIT data, the average CPO selling price in July reached US$ 648/ton. It slightly effected the fruit price in the farmers level. Most of them still got the selling price, reaching Rp 800 – 1000/kg of fruit.

But by the end of July 2015, the selling fruit price drastically decreased. InfoSAWIT noted, it reached Rp 400 – 500/kg. Why does it drastically decrease?

CSF is The Cause?

The average CPO price in July 2015 reached about US$ 648/ton. If it is changed to Rupiah, within the currency Rp 13.400/US Dollar, it reaches Rp 8.683.200/ton of CPO. The selling price should be Rp 800 – 900/kg. In some regions, it was sold within Rp 1.000/kg.

But recently,  . . .

 

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