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Deja vu for Malaysian CPO producers

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By JAY WHY

Franceproposaltoimposeadditionaltaxonpalmoilinthenameenvironmental damage oil palm plantations can cause is uncalled for asthe Malaysian Government and growers have adopted aholistic approach towards the environmental sustainability.

ReuterssaidFranceNationalAssemblyisduetovotebythisweekonaproposed additionaltaxonpalmoil,amovethathaspromptedanoutcryfromtopproducers Indonesia and Malaysia who call it discriminatory and unfair.

The proposed additional levy, aimedat reflecting theenvironmental damage palm oil plantationscancause,hasbeencutto€90(RM416)pertonnefrom€300initially, but would still nearly double the current vegetable oil tax of €104.

Producerswhocanprovethattheoilstheyusemeetthe“criteriaofenvironmental sustainability” would be exempted. 

Itsdéjàvuforthepalmoilindustry.Withbillionsatstakepalmoilindustrycame underattacksmainlyfromtheUSsoybeanandotheroilseedsproducersinthe 1980sclaimingthattheconsumption of palmoil and othertropical oils contributesto coronary heart disease. 

Studiesconductedbythevariousleadingindependentlaboratoriesworldwidehave sincedebunkedtheAHAclaimsandinsteadshowedthatconsumptionofpalmoil promotes more health benefits. 

Malaysianpalm-oilexpertsandgovernmentofficialssaythesoybeangrowersare basingtheirclaimsondubiousandoutdatedresearchinordertowinacompetitive edge over the growing threat from palm oil in the world market. 

TheASA'scampaigntolabelpalmoila''saturatedfat''is''highlydiscriminatoryand nothingmorethanveryselectiveprotectionismindisguise''saidformerMinisterof Primary Industries Lim Keng Yaik. 

IsFrancemovetoimposetheadditionallevyalsoadisguisetoprotectisownoil seedfarmersasmillersasfoodmanufacturersthereturntomorecompetitivepalm oil? WhatissadthatsomehealthandbeautypublicationsincludingthoseinMalaysia have lapped on the lies churned by the anti-palm oil lobbyists. 

Yes,weagreethattherearesomegreedyplantationownerswhohaveresortedto unethicalandunsustainableplantingmethods.Theyhavecausedhundredsof millions ofdamagedtotheenvironmentespecially the trans boundary haze with their illegal deforestation, slash and burn method. 

Nevertheless,almostallplantationcompanies operatinginthiscountryareadopting the sustainable approach.

AMalaysianPalmOilBoardreportsaidtheoilpalmindustryisamajorsourceof employment, and as the planted area grew from 1.2 million hectares in 1980 to 5.64 million hectares in 2015. The report said based on an estimated 5-persons per household, the total number of peopleinMalaysiadependentontheoilpalmindustrycouldwellbearound2.26 million.

Hence,overtheyears,theoilpalmindustryhasconsistentlycontributedtowards povertyeradicationandnarrowingoftheincomegapbetweenruralandtown-folk, createdruraltownshipswhereworkersresideandenjoygoodqualityoflifewith adequate social infrastructure (e.g. housing, health, religious facilities), contributed to socialsecurityandpeaceandreducedmigrationoflabourforcefromtheruralto urban areas.

In line with the element of protecting the planet, Malaysia places strong emphasis on the planet’s needs and is signatory to several international conventions, including the Convention on Biodiversity 1992 (CBD2), the International Tropical Timber Agreement, and the Charter of the Indigenous-Tribal Peoples of Tropical Forests.

The oil palm cultivation in Malaysia, is on legally designated agricultural land, and is only planted on land that is deemed suitable for long-term cultivation of this perennial crop. The rights of indigenous peoples and their land rights are protected by law.

Hence, oil palm:
-is not cultivated on land gazetted as forest reserves, national parks, wildlife or gamereserves. Permanentforests,covering55.6%ofMalaysia’slandremains devoted to wildlife habitat and biodiversity conservation.
 
-hasseenfewernewplantingsondegradedlogged-overlandzonedfor agriculture.
 
-does not cause wanton forest destruction, and 
 
-is often converted from other agricultural land uses. 
 
AccordingtoGlobalForestResourcesAssessment(FRA)2015reportfromtheUN Food and Agriculture Organisation (FAO), the forest cover in Malaysia is indeed in an increasingtrend. 
 
ThereportstatedthatforestcoverinMalaysiawasrecordedat more than 22 million hectares in year 2015 or more than two thirds of land area from 21.59 million hectares in year 2000. This healthy trend of forest cover is indeed good news for Malaysian biodiversity conservation and efforts.
 
TheReutersreportsaidtheproposedadditionallevywouldalsoapplytocopra (coconut) and palm kernel oil, also commonlyused in commercial cooking, which are currently taxed at €113 a tonne.
 
Thetaxwouldonlyapplytooilsusedinfood,notcosmeticsandbiofuel two sectors in which vegetable oils are widely used. ProducersinIndonesiaandMalaysia,theworld’stwolargestproducers,protested ahead of the vote.
 
“Frenchimportsarenotthatbig,buttheissueisthatifthisgoesouttheremightbe repercussionsinothercounties,”saidRoyLim,groupplantationsdirectorof Malaysian palm oil firm Kuala Lumpur Kepong (KLK).
 
Indonesia raised the issue at the World Trade Organisation earlier this month. Franceimportsabout100,000tonnesofIndonesianpalmoilperyearand11,000 tonnes of Malaysian palm oil last year.
 

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