Sri Lanka can annually save around USD 200 million from the palm oil import bill if the government lifts the ban on palm oil plantation that was stalled by an earlier government.
The Palm Oil Industry Association of Sri Lanka (POIASL) Chief Operating Officer Yajith De Silva said that the then government allowed the plantation of 20,000 hectares of palm trees and the industry then planted 11,000 and invested Rs. 500 million to create nurseries to find trees to plant the balance.
“However due to the uncalled-for ban done through recommendation of an environmental committee future plantations of palm were banned and now the plants in the nurseries are unpalatable causing a huge Rs. 500 million loss to the plantation companies.” If the present government gives us the green light to replant we will make sure to zero this palm oil import bill. The present legal and regulatory impediments to cultivating oil palms stand as a lost opportunity for Sri Lanka,’ he said.
The Asian Palm Oil Alliance, a multilateral body representing the industry in Asia, is a global network that supports smallholder farmers and workers, and the Palm Oil Industry Association of Sri Lanka, came together at a joint press conference, yesterday and Managing Director – Solidaridad Asia, Dr. Shatadru Chattopadhayay said that India has now decided to plant over 1 million hectares of Palm.
“Indian government has identified the health and economical benefits and this is the reason this initiative was made by Prime Minister Narendra Modi.”
Emeritus Professor Asoka Nugawela Ex Co Member, POIASL said, “It is crucial to thoroughly evaluate the economic benefits associated with oil palm cultivation, along with its present and potential future contributions to GDP, rural development and alleviation of poverty. With over Rs. 11 billion in direct and indirect contributions to Sri Lanka’s GDP, the oil palm plantation and milling sectors play a pivotal role in the nation’s economic landscape. Approximately 60% of this economic impact stems from the plantations, while the remaining 40% arises from the milling sector. Moreover, these sectors create over 5,000 employment opportunities, supporting the livelihoods of around 21,000 individuals.As a result of the high-value crop and outsized demand for palm, the industry also has the potential to generate high-income employment, with an average monthly income of Rs 185,000 per employee.”
This is significantly higher, in many instances by a factor of two, when compared with workers involved in tea, rubber, coconut and other plantations.