Pekanbaru, Riau, (Antarariau.com) - The price of fresh fruit bunches (FFB) of oil palm rose in Riau following the falling value of Malaysian ringgit .
The price of FFB of 10-year or older oil palm trees is set at Rp1,971.65 per kilogram or an increase of Rp40.18 for the period of Jan. 29-Feb. 4 this year.
"The exchange rate of the Malaysian ringgit fell against the US dollar resulting in a decline in the export price of Malaysian crude palm oil (CPO)," head of the plantation product promotion and marketing section of the Riau plantation office Rusdi said here on Tuesday.
With the shrinking value of ringgit, Malaysia decided to adopt an export retention policy , delaying exports of its CPO, Rusdi said.
"The delay is expected to last for around three months based on information from the Malaysian Palm Board," he said.
He said Riau or Indonesia in general would gain from the CPO price hike as a result of the export retention by Malaysia.
Based on the results of a meeting of the Riau FFB price team, the price is set at Rp1.411.13 per kg for FFB of three year old palm trees, Rp1,576.10 per kg for FFB of 4 year old trees, Rp1,686.67 per kg for FFB of 5-year old trees, Rp1,736.01 per kg for FFB of 6-year old trees, Rp1,802.35 per kg for FFB of 7-year old trees , Rp1,858.52 per kg for FFB of 8-year old and Rp1,918.03 per kg for FFB of 9-year old trees.
The price of palm kernel oil (PKO) averaged Rp5,769.18 per kg this week.
Price of Oil Palm Fruits Up on Falling Value OF Ringgit
