Price Of Oil Palm Fruits Up In Riau

Pekanbaru, Nov 6 (Antara) - The price of oil palm fresh fruit bunches (FFB) rose in Riau to follow the increase in the price of crude palm oil (CPO) in international market. The price of FFB of oil palm is set for the next week at Rp1,795.56 per kilogram or an increase of Rp25.17 per kg from the past week. The price is set by a price fixing team made up of producers and local government officials. Demand for CPO in the world market such as in Malaysia and Russia has increased, Karya Muslimat, the general secretary of the Association of Oil Palm Farmers (ASPEK) said here on Tuesday. The price rise followed shrinking stock of CPO in international market, Karya said. In addition supply of soybean oil dropped from the United States as a result of heavy rain. Shortage in soybean supply forced consumers to use CPO as a substitute. The increase in the price of CPO is expected to continue until February, 2014 in Riau especially with the Christmas, new year and Chinese new year. Riau is the largest CPO producing province in Indonesia, which is the world`s largest CPO producer. Main CPO producers in Riau include PT PN V, PT. Sinar Mas Group, PT Astra Agro Lestari, PT Asian Agri Group, PT Citra Riau Sarana and PT Musimas.