Government Wants Palm Oil Industry To Replace 30% Of Chemical Fertilizers

http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_c45c676a-cb73c03a-cbd8dc00-dbc265e0

by Julie Chong

KUALA LUMPUR: The government wants to see the palm oil industry reduce the imports of chemical fertilisers by 30%, which will result in savings of RM1.5 billion within the next five years.

Minister of Plantation Industries and Commodities Datuk Peter Chin Fah Kui said that it hopes to reduce the imports by encouraging oil palm plantation owners to use bio-fertilisers in their plantations.

“This will benefit both the industry and the government as well,” said Chin during the opening ceremony of the 2008 Seminar on Bio-Fertiliser, Biogas and Effluent Treatment in the Oil Palm Industry held here yesterday.

Chemical fertilisers were mainly imported from Russia, Morocco and Canada, he said.

“Last year, Malaysia imported about 3.4 million tonnes of chemical and mineral fertilisers worth RM2.6 billion. The figure is expected to reach RM4 billion this year due to the increase in the price of petroleum and other commodities as well as the general increase in demand for fertilisers for agriculture,” Chin said. “It causes a substantial drain on Malaysia’s foreign exchange reserves.”

Rising fertiliser costs could drag down plantation firms’ revenues especially with crude palm oil prices retreating to almost half their March peak of RM4,486 per tonne.

“The oil palm industry players must maximise profits by venturing into new growth areas such as harnessing biogas from palm oil mill effluent and production of bio-fertilisers,” he said.

In his speech, the chairman of the Malaysian Palm Oil Board (MPOB) Datuk Sabri Ahmad said all stakeholders in the palm oil industry should undertake projects which turn problems into opportunities and create wealth from waste.

To a call for a cut in the crude palm oil windfall tax, Chin replied that dialogues have been held with the industry and their views have been forwarded to the Ministry of Finance. However, there has yet to be a reply from the Ministry of Finance.