Amid the Covid-19 outbreak, global rubber and CPO demand are expected to increase. Chairman of the Sumatran Plantation Company Cooperation Agency (BKS-PPS) Soedjai Kartasasmita said several factors caused the increase in rubber and CPO requests. This happens because many hospitals require rubber gloves. Besides, other rubber-based production industries require these leads.
According to Soedjai, in terms of supply, the amount of rubber available was significantly reduced as a result of the long dry season. Automatically prices will move up. Meanwhile, CPO demand is expected to rise because the Chinese economy is starting to stretch, and domestic consumption is increasing because more people stay at home, said Soedjai.
Other factors can cause CPO demand to rise, namely the European market. The European Union is also affected by the global crisis, and in the present conditions, agriculture is a priority, especially concerning food supply. On the other hand, their gas supply depends a lot on Russia and Russia could suddenly threaten to change its quantity. Therefore, it is not surprising that they made a friendly approach to Indonesia. The EU Ambassador has promised to participate in funding the ISPO program, but it has not materialized due to the crisis.
The price of gas on the world market was down again because the price of petroleum fell sharply (Brent was around US $ 25 / barrel, which was once the US $ 75). Regarding fertilizer use, consumers tend to prefer agricultural products that use organic fertilizer. ***
Tabloidsinartani.com, 30/03/2020