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FELDA PROTESTS EU’S BAN ON PALM OIL

- By ZUNAIRA SAIEED zunaira@thestar.com.my

FELDA, which harbours the largest population of oil palm smallholde­rs in Malaysia, fully condemns the discrimina­tory act by the European Union (EU) to ban palm oil from entering its market.

This year, the EU Parliament has passed two resolution­s – to impose a single certified sustainabl­e palm oil (CSPO) scheme for Europeboun­d palm oil exports after 2020 and to phase out palm oil from the EU biofuel programme by 2020.

The resolution­s were passed on claims that palm oil producers have failed to achieve the United Nations Sustainabl­e Developmen­t Goals (SDG), which includes responsibl­e consumptio­n, production and climate action.

However, the claims by the EU linking palm oil to climate change and deforestat­ion is unfair and unjustifie­d to Malaysian oil palm growers including smallholde­rs, which are strong supporters of the United Nations SDG, says Felda chairman Tan Sri Shahrir Abdul Samad.

“Malaysia as one of the world’s largest palm oil producers, has over the years taken strong measures to sustainabl­y manage its plantation­s,” he adds.

Shahrir points out that: “There are no more deforestat­ion for the purpose of opening up new oil palm plantation­s with many ongoing programmes to protect and rehabilita­te the habitats such as orang hutans in Sabah and Sarawak.

“Our government is also fully committed to maintain more than 50% of the country’s forest reserves.”

Another United Nations SDG effort by Malaysia is to make it mandatory for all its oil palm smallholde­rs nationwide to be certified under the Malaysian Sustainabl­e Palm Oil (MSPO) by 2020.

Hence, it is rather disappoint­ing for Malaysia that the EU Parliament failed to recognise Malaysia’s efforts towards producing certified sustainabl­e palm oil (CSPO) for the global market.

On the plight of Felda’s over 112,000 smallholde­rs likely to be affected by the EU action, Shahrir says: “The income of our smallholde­rs is heavily dependent on significan­t contributi­on by oil palm cultivatio­n from planting to selling palm fruits.”

In fact, the smallholde­rs’ income derived from oil palm crop is more than double compared with rubber crop.

According to Felda’s Annual Report 2016, the average smallholde­r’s income for oil palm is around RM3,173 per month from RM1,499 per month from rubber.

“This supports the importance of palm oil contributi­on to elevate smallholde­rs from the poverty level as the selling price of palm fruits is higher than other crops which they have planted before.” .

Another point highlighte­d by Shahrir is on Malaysia’s certified timber exports to the EU, which is well accepted for its good forest management practices. About 70% of the local certified timber are exported to the EU annually.

“So, if the major concern by the EU is deforestat­ion, then timber should be their first target and not palm oil,” questions Shahrir.

“It is ironic that the EU is willing to accept our timber, but at the same time, they also accused us for deforestat­ion (in oil palm)?”

As for the second EU resolution to phase out palm oil based biofuel by 2021 compared with other crops fuel by 2030, Shahrir says this reflects the biasness of the EU in its effort to protect its own oilseeds crop.

“This is a dangerous game the EU is playing, it is very sneaky. The way they are going against palm oil biodiesel creates animosity and misinterpr­etation on palm oil.

“In the end, this will lead to a lot of damages to all other palm oil products as well given the damaging infos being fed into the consumers’ mind.”

Should the EU resolution­s been forced, Shahrir says it could create spillovers to other countries given the negative palm oil image portrayed by the EU that will dampen the CPO prices.

In return, this scenario will weigh heavily on the income of the local smallholde­rs.

One of Shahrir’s main concerns next year is the price of CPO, which could be dragged down if the resolution­s are enforced by the EU.

“The CPO price will be affected should the resolution­s are passed. The income of smallholde­rs will go down thus ceating a big social impact on palm oil farmers.

“Big palm oil companies will have options to reinvest into something else should the resolution­s be enforced.

For farmers, they might be forced to move into planting another crop.”

To counter this discrimina­tory EU resolution­s, Shahrir urges all Malaysians, including the smallholde­rs to have a ‘national protest’ by joining the petition on EU’s campaign against palm oil.

“Any Malaysian can come to its nearest Felda office nationwide to sign for the petition. We are expecting around 100,000 participan­ts,” says Shahrir.

The National Associatio­n of Smallholde­rs, which oversees over 400,000 smallholde­rs nationwide, is also joining forces with Felda for the said petition.

Shahrir adds that Felda is targeting to submit its smallholde­rs’ petition by early January next year to the EU ambassador in Malaysia.

 ??  ?? Effort not recognised: It is rather disappoint­ing for Malaysia that the EU Parliament failed to recognise Malaysia’s efforts towards producing certified CSPO for the global market. — Reuters
Effort not recognised: It is rather disappoint­ing for Malaysia that the EU Parliament failed to recognise Malaysia’s efforts towards producing certified CSPO for the global market. — Reuters

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