CPO supply reaches only 17,000 tons<\/p>\n
JAKARTA (JP): Private companies and the joint marketing agency
\nfor the state plantation firms have supplied only 17,000 tons of
\ncrude palm oil (CPO), far short of the targeted 75,000 tons for
\nbuffer stocking, an official said.<\/p>\n
\"Private sector firms have procured only 7,000 tons of CPO and
\nthe marketing agency 10,000 tons,\" Antara quoted Chairman of the
\nNational Logistics Agency (Bulog) Beddu Amang as saying over the
\nweekend.<\/p>\n
CPO is a raw material for the production of cooking oil, one
\nof basic commodities whose soaring price can generate inflation.<\/p>\n
Cooking oil prices began soaring last year and reached their
\npeak of over Rp 1,600 (70 U.S. cents) per kg on the Moslem Idul
\nFitri holidays last March. Bulog, which was set up to manage the
\ndistribution of basic food commodities and maintain their prices
\nat reasonable levels, was unable to do so for cooking oil prices
\nearlier this year.<\/p>\n
Bulog has requested 10 private CPO producers to supply 37,500
\ntons of CPO and the joint marketing agency for the state
\nplantation firms to supply the other 37,500 tons for its
\nbufferstocking operation.<\/p>\n
Bulog's CPO bufferstocking is aimed at bringing down the
\nmarket price of cooking oil to Rp 1,400, a price level that was
\nobtain before the beginning of the Moslem fasting month earlier
\nthis year.<\/p>\n
Beddu acknowledged that the slow motion of the CPO procurement
\nwas caused by producers' commitments to meet their contracts with
\noverseas buyers.<\/p>\n
He added that the current price of cooking oil has declined to
\nRp 1,410 per kg, the level planned to be reached by the year-end.<\/p>\n
According to Beddu, the current decline in the cooking oil
\nprice is caused by the importation of olein, a raw material of
\ncooking oil which is made from CPO, from Malaysia and the
\ndeclining price of CPO in the overseas market.<\/p>\n
\"The price of CPO from Rotterdam has declined from $650 per
\nton to $600 per ton,\" said Beddu.(kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cpo-supply-reaches-only-17000-tons-1447893297",
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