As rubber loses its bounce palm oil seeps in
The loss-making Regional Plantation Companies (RPC) increasingly opt to plant palm oil trees in the traditional rubber plantations, the Plantation Ministry said this week.
The RPCs are now turning to palm oil trees in view of the local demand for palm oil for cooking purposes, said Secretary Upali Marasinghe.
He said the Government is permitting loss-making RPCs to go in for palm oil production, as the RPCs feel it will be more lucrative in the future.
Annually, 80,000 metric tonnes of palm oil is imported from Malaysia, and the RPCs envisage they can grab a share of the local market.
As palm oil trees bear fruit within 30 months, the Government said the RPCs will be able to reap profits within three to four years.
The Government has allocated 20,000 hectares of rubber land for palm tree cultivation, with 8,500 hectares already permitted for palm tree cultivation by the RPCs.
The decline in demand for rubber follows a decline in China’s consumption of latex rubber consequent to the economic slowdown in that country.
Alternatively, rubber plantations are being encouraged to go in for palm oil production in other areas of the country, such as Ampara and Moneragala districts where 5,000 hectares have already been planted.
Also the search for an alternative weedicide, following the ban of glyphosate continues. The RPCs said with no alternative herbicide in the market, the plantations are under strain to kill the fast growing weeds.
Plantation Association of Ceylon representing the 23 RPCs said it is important the Government finds an alternative weedicide soon. Secretary, M. Goonatilake said the weeds were growing fast and eating into the crops, using up all the fertilizer in the soil.
Mr Marasinghe said the entire cultivation sector is in need of a weedicide and the Government is looking for an effective, less hazardous weedicide for the crops.
He said the problem has been presented before the Reforms Committee appointed to look into the restructuring of the Plantation Companies and soon, an alternate weedicide will be found.