JAKARTA — The Indonesian government met with palm oil farmer groups on Friday (May 29) to address concerns about a steep decline in the prices of fresh fruit bunches (FFB), which farmers say was caused by uncertainties about a new plan to funnel all palm oil exports through a state agency.
Palm farmers complained earlier this week that after the policy to centralise exports was announced, many FFB collection points shut down, causing prices at the farmers level to collapse.
Deputy Agriculture Minister Sudaryono told reporters after meeting palm oil groups on Friday that the central government is asking local authorities to ensure that FFB pricing complies with the rules.
"We ask regional heads to actively monitor the purchase price of fresh fruit bunches (FFB) and ensure that palm oil mills in their regions purchase FFB in accordance (with the regulations)," he said.
He said during the transition period, the export business will continue as usual for refiners, and will not be disrupted.
PT Danantara Sumberdaya Indonesia, the state company through which all palm oil shipments will be channelled, will also conduct export business with transparency and accountability, Sudaryono said.
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