Monday, October 27, 2008

Palm oil farmers are suffering

Elaeis guineensis fruits on tree, ripe and 2 w...The palm oil farmers' life in west Sumatra are suffering due to the low price of fresh fruit bunches of oil palm (TBS). Until Sunday (26/10/2008), palm oil price in the Agam regency and Pasaman, West Sumatra, valued only IDR. 500 per kilogram

As a result of a decrease in the price of fresh fruit bunches (TBS) palm oil, palm oil farmers in some regions difficult to restore the credit of fertilizer. That happens because income from palm oil plunged.

The farmers generally take fretilizer's loan from cooperatives. The amount loan is between IDR 1.000.000 - IDR. 3.000.000, installments for two years. When the price of palm oil is still high, farmers usually do not facing problem to pay the loan. But as now when the price of palm oil is decreasing, often behindhand of the loan.

The previous price of palm oil is only IDR. 350 per kg and with this price, many farmers do not harvest the palm because the price does not match to the production costs. The palm oil traders said the mediator can not increase the buying price because factory aslo offer the low price.