The licensing requirement enforced on oil palm smallholders is aimed at ensuring that Fresh Fruit Bunches (FFB) harvests come from legally licensed cultivated farms and avert stolen yields from being sold to palm oil mills.

This will facilitate the Malaysian Palm Oil Board (MPOB) in verifying the harvests and tracing doubtful ones, the Plantation Industries and Commodities Ministry said in a statement today.

It said this is in the wake of 304 police reports made over alleged FBB thefts in Sarawak from 2013 until July this year and 12 cases of unsubstantiated supply of FBB to palm oil mills and dealers in the state.

oil palmTo address the issues, it said the MPOB has strengthened enforcement and requested cooperation from estates to step up security while millers and dealers to provide evidence of their supply.

On a demonstration by a group of disgruntled smallholders in Samarahan, Sarawak yesterday, claiming that the MPOB had ordered mills against accepting FFB from them, the ministry said it emanated from an investigation over a complaint made by TH Pelita Gedong over the theft of 6,930 tonnes of FFB on July 16.

It said a smallholder was asked to quantify the FFB supplied to Tetangga Akrab Palm Oil Mill Sdn Bhd as it exceeded the quantity of his cultivated area.

        

MPOB, as regulator of the industry, needs to ensure compliance of its regulations as enshrined in the MPOB Act 582 and investigate any irregularities based on complaints lodged.

The ministry said it would continue to assist and facilitate smallholders participation in the development of the oil palm industry through the MPOB.

These include providing grants and assistance in the planting of oil palm as well as conducting outreach activities to enhance smallholders productivity through the placement of Tunjuk Ajar dan Nasihat Sawit (Tunas) officers.

Currently 40 Tunas officers are stationed in Sarawak, including Kota Samarahan.

 

The MPOB also facilitates the selling of FFB by smallholders through the establishment of cooperatives, it said, adding that smallholders receive better FFB pricing of up to 20 per cent higher than those sold to dealers.

- Bernama