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The Cost of CPO Drop Down

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Palm Oil: A worker is loading palm oil to truck. The drop down of the cost Crude Palm Oil (CPO) causes also drop the cost of palm oil in Farmer level.
Palm Oil: A worker is loading palm oil to truck. The drop down of the cost Crude Palm Oil (CPO) causes also drop the cost of palm oil in Farmer level.

Choirul Fuadi, Central Kalimantan, CIDISS – The cost condition of some goods is on bad news. It is also in cost of Crude Palm Oil (CPO).
The drop down of cost of CPO causes the drop down of palm oil cost in farmer level. Such had been around of farmers in Pangkalan Banteng district, Kotawaringin Barat regency, Central Kalimantan.
Farmer usually sells palm oil with average cost in IDR 1.300,00 per Kg. Now, they only sell in cost around IDR 700,00 per Kg.
Farmer assume, the cost drop down because effect of the weakness of Rupiah exchange and also quota of export or market request decrease,
“Its economic crisis effect,” said a farmer in Pangkalan Banteng via call, Tuesday (1/9/2015).
After long summer till august cause palm oil is rare. Now, farmer faces the low sell cost of palm oil.
The board of managing of Palm oil plantation Budget (Badan Pengelola Dana Perkebunan (BPDP) Sawit) which has jobs to collect export fee of CPO also give comment to the situation. Through some consolidation with palm oil industry in Indonesia, BPDP realize that in the late monthly is complicated phase.
“We sure that situation will be end soon and the new balance will reach. And after the market growth, palm oil industry of Indonesia has ready to compete,” said Director BPDP Sawit, Bayu Krisnamurthi. (*)

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