KUALA LUMPUR: The palm oil industry in Malaysia has and will never result in deforestation because of the existing replanting incentives scheme introduced by the Rubber Industry Smallholders Development Authority (Risda) since 1952.
Responding to the European Union (EU)’s claims that palm oil was not a “green fuel” and should not be promoted since it causes deforestation, Risda chairman Rosely Kusip said the replanting activity had not affected the biodiversity of the forest.
“Smallholders are required to cut down their oil rubber trees of 15 to 20 years and replace it with palm trees. “As such, this plantation activity has not affected the biodiversity and ecosystem of the forest,” he said in a statement recently.
He said almost 45 per cent of land area in Malaysia consists of peat soils for palm tree cultivation and unused or idle peat lands were also used for palm oil trees, thus rubbishing the claims that the usage of palm oil causes deforestation.
Rosely reiterated that the ban would also have a high impact to the economy and the well-being of smallholders.
“The palm industry is the major source of income for smallholders and they are entitled to plant palm trees and other crops that are compatible to the subsidies given by Risda.
“If these smallholders lose their primary source of income because of the EU ban, it would not only have an impact on the economic growth but would also bring negative effects to their families,” he added.
Risda, an agency upholding the well-being of smallholders, has helped 154,090 smallholders working in the palm oil plantations with total land area of 482,024 hectares nationwide.
It was reported that the EU countries proposed to fully ban palm oil biofuels by 2030.
The ban has caused anxiety among Malaysian oil palm growers as EU is Malaysia’s third largest palm oil customer.
Early this year, Primary Industries Minister Teresa Kok said the ban was unfair and uncalled for.
In March, Prime Minister Tun Dr Mahathir Mohamad said Malaysia may stop importing several European products as a retaliation against the EU’s ban on palm oil from Malaysia.
Dr Mahathir said the move to bar imports from the EU countries was an option that could be adopted by Malaysia.