REPUBLIKA.CO.ID, PEKANBARU -- The Provincial government of Riau has recorded a decline in the price of Crude Palm Oil (CPO) in Riau by Rp17.66 per kilogram as the price went from Rp1,786.25 per kilogram last week to Rp1,768.59 per kilogram.

One of the reasons for the decline in price is due to the stagnant global demand for CPO since the Eid Al-Fitr period this year.

"After the Eid period, there has even been a negative sentiment from the French Environmental Ministry, which stated that they would take measures to limit the use of palm oil in the mix of biofuel," Head of the Riau Province Food Crops, Horticulture and Plantation Offices Ferry Ernaputra stated in Pekanbaru on Tuesday.

He believed that the policy was laid down by the French government in order to lessen deforestation in palm oil producing countries.

The French government's plans was a result of the most recent international pressure on Indonesia's seeded product, the palm oil, he added.

"There is an external factor that contributes to the decline in the price of Riau's CPO during the July 12 to 19 period," he noted.

Meanwhile, the internal factor that had also contributed to the decline include the price decrease from a number of data source corporations.

Ernaputra further elaborated that although there is an increase in the selling price of CPO and kernel from data source companies, they are not significant enough to inflict an increase in the price of fresh fruit bunches, because a number of other companies have just started to sell CPO.

"There has been an increase in the price of PTPN V's CPO of Rp36 per kilogram, whilst the product of PT Astra Agro Lestari Group experienced a price increase of Rp134.55 per kilogram. Asian Agri Group, on the other hand, experienced a decline in their prices of Rp91.32 per kilogram compared to the prior price," he explained.

As for PT Astra Agro Lestari Group's kernel products, there has been an increase of Rp50 per kilogram, whilst PT Asian Agri Group's products increased by Rp14.37 per kilogram, he revealed.

PT CSR also experienced a price increase by Rp18 per kilogram compared to the price in the previous week.

For the July 19 to 12 period, it is recorded that the price of Riau's CPO fresh fruit bunches aged 3 years have reached Rp1,255.11 per kilogram, whilst the price for the 4-year-old ones was at Rp1,413.61 per kilogram.

The 5-year-old ones are priced at Rp1,512.57 per kilogram; 6-year-old ones at Rp1,557.28 per kilogram; 7-year-old ones at Rp1,616.65 per kilogram; 8-year-old ones Rp1,667.07 per kilogram; and 9-year-old ones at Rp1,720.73 per kilogram.

As for the older CPO fruit bunches, the 21-year-old ones were priced at Rp1,725.85 per kilogram; 22-year-old at Rp1,682.43 per kilogram; and 25-year-old at Rp1,553.54 per kilogram.

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