Palm Oil Farmers' Income in Riau Still Below Production Costs

Agroindustry

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Fitria Nurhayati 24/02/2021 10:48 WIB

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Palm Oil Farmers' Income in Riau Remains Below Production Costs

Palm Oil Farmers' Exchange Rate Before and After the Palm Oil Fund (2013-2019)

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Palm Oil Farmers' Income in Riau Still Below Production Costs

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Palm Oil Farmers' Exchange Rate Before and After the Palm Oil Fund (2013-2019)

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The fluctuating price of Fresh Fruit Bunches (FFB) in Riau Province, even after the introduction of palm oil funds, has caused instability in the Farmer Exchange Rate (NTP). The NTP itself is an indicator of farmers' welfare. An NTP below 100 indicates that farmers' income from production exceeds their expenditure.

The NTP for palm oil farmers in Riau Province was below 100 in the two years before the introduction of the palm oil fund, specifically 95.4 in 2013 and 97 in 2014. In 2015, when the palm oil fund was launched, the NTP fell to 95.2. In 2016, the NTP climbed to 98 and peaked at 103 in 2017. However, this was the only time the NTP exceeded 100. Because a year later, the NTP for Riau's palm oil farmers fell back to 98, and further declined to 95.6 in 2019.

Editor : Jeany Hartriani

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."