InfoSAWIT, PESISIR SELATAN – Fresh fruit bunch (FFB) prices for independent oil palm smallholders in Pesisir Selatan Regency, West Sumatra, are considered the lowest in the province, significantly affecting farmers’ income.

According to Novermal Yuska, a member of the regional legislative council, the issue has persisted for years without concrete solutions from local authorities. “FFB prices in Pesisir Selatan are only շուրջ Rp3,000 per kilogram, lower than in Sijunjung which reaches Rp3,600 per kilogram, and even below the government-set price for plasma plantations at Rp4,180 per kilogram,” he told InfoSAWIT.

The situation is worsened by high weighing deductions at palm oil mills, reaching 9–12%, significantly higher than other regions such as Sijunjung, which only records 4–5%.

With approximately 41,000 hectares of smallholder plantations, farmers are estimated to suffer losses of around Rp41 billion per month or Rp492 billion annually. This estimate is based on a minimum productivity of 1,000 kilograms per hectare, a price gap of շուրջ Rp500 per kilogram, and harvesting twice a month.

“If FFB prices in Pesisir Selatan could match those in other regions, farmers’ income could increase significantly by hundreds of billions of rupiah annually,” he explained.

He also highlighted structural issues in the plantation sector, where plasma plantations only cover around 700 hectares, far below the ideal potential of 7,200 hectares.

Furthermore, he pointed to the absence of derivative regulations from the provincial government regarding the implementation of Minister of Agriculture Regulation No. 13/2024, which governs FFB purchases.

He urged authorities to take firm action, including setting fair FFB prices, monitoring oil extraction rates at mills, strengthening farmer institutions, and involving the Business Competition Supervisory Commission (KPPU) to oversee potential unfair business practices. (T2)