KUALA LUMPUR: Boustead Plantations Bhd (BPlant) is optimistic that the diesel subsidy rationalisation initiative will have a positive long-term impact on the plantation industry.
The group has affirmed that its business effectiveness and performance will not be impacted as it has been using diesel fuel at commercial rates for all its operations.
Therefore, BPlant said the removal of the diesel subsidy will not have any direct impact on the group, apart from the broader benefits provided in terms of sustainable economic growth and advancement of the overall economy.
Chief executive officer Datuk Zulkarnain Md Eusope said BPlant is dedicated to supporting initiatives that promote sustainable business and economic growth.
He added that the diesel subsidy rationalisation programme will benefit smallholders who rely on private vehicles for fresh fruit bunches (FFB) transportation to the group's palm oil mills.
"The group fully supports the government's efforts to ensure the well-being and business continuity of these crucial partners in the palm oil industry
"By rationalising diesel subsidies, this not only promotes sustainable economic growth but also safeguards the interests of our valued smallholder partners, who are integral to the success of the palm oil industry," he said in a statement today.
BPlant noted that it recognises the pivotal role of small farmers and plantation smallholders in the agriculture and commodity industry, as a company that sources a portion of its FFB from smallholders.
In 2023, about 15 per cent of the group's processed FFB was sourced from outgrowers and smallholders operating in the vicinity of its mills, ensuring a stable and continuous income for this vital stakeholder group.