JAKARTA – The Indonesian Palm Oil Association (GAPKI) Chairman Eddy Martono said that the decrease of rapeseed price below the palm oil in China had indicated that the palm oil is becoming less competitive than other vegetable oils.
According to Eddy, the palm oil has productivity much higher than rapeseed. From the same size of area, growers can produce much higher amount of palm oil, making its production cost lower than the others.
“It doesn’t make sense that rapeseed with productivity of 0.7 ton per hectare can be sold cheaper than the palm oil with productivity of 4 tons per hectare,” Eddy Martono said during the launching of a book titled “Masih Berjayakah Sawit Indonesia” (Is Palm Oil of Indonesia Still Leading) authored by Joko Supriyono, former chairman of GAPKI, in Jakarta on Wednesday (04/09/2024).
Previously, Eddy Martono revealed that the price of sunflower oil had also dropped below that of palm oil. “I’ve just returned from my visit to China. Unexpectedly, I found there the sunflower with productivity much lower than palm oil was sold cheaper than palm oil,” Eddy said on Tuesday (27/08/2024).
Eddy said that due to the cheaper price of sunflower, many people in China turn to sunflower and reduce their imports of palm oil from Indonesia.
Eddy reminded the importance of business friendly regulations to increase competitiveness of palm oil and the government’s support to establish a special board of palm oil to improve competitiveness of palm oil at the global market.
According Eddy, if all issues regarding palm oil unaddressed for too long, Indonesian palm oil industries will deteriorate and become less competitive at the global market.
“Considering the current condition, our palm oil industries need a special institution which will focus on the management and development of palm oil industries as a whole. With the existence of a special institution, we hope all needs of our palm oil industries to grow better and stronger can be accommodated thoroughly,” said Eddy.
The special institution can also play an important role in protecting the palm oil industries from the negative campaigns and promoting positive image of palm oil at the global market.
“Basically, the establishment of the special palm oil board will increase the efficiency and effectiveness of palm oil industries, including in licensing, supervision, and development of infrastructure,” he said. (*)
Source: sawitku.id
