Govt will not continue funding incentive for sustainable palm oil certification, minister says

Teresa Kok said there were several factors which caused smallholders to refuse to obtain MSPO certification, including the requirement for the conversion of the land use from any type of crop to oil palm. ― Picture by Miera Zulyana
Teresa Kok said there were several factors which caused smallholders to refuse to obtain MSPO certification, including the requirement for the conversion of the land use from any type of crop to oil palm. ― Picture by Miera Zulyana

TAIPING, Aug 15 — The government will not be extending the Malaysian Sustainable Palm Oil Certification (MSPO) incentive which ends on December 31 this year, said Primary Industries Minister Teresa Kok.

As such, smallholders who have failed to register and take advantage of the incentive — where the government fully bears the certification costs — would be at the losing end.

“The government has disbursed more than RM100 million to pay for the certification cost. I have travelled to many places and spoken about this.

“If they still refuse to be certified, it would be a loss for them because it is free,” she told reporters after the MSPO briefing session with Perak oil palm growers here today.

The government has allocated RM135 per hectare as MSPO incentive for independent smallholders to boost the crop’s profile in the global market, aside from addressing current and future challenges.

Kok said there were several factors which caused smallholders to refuse to obtain MSPO certification, including the requirement for the conversion of the land use from any type of crop to oil palm.

“I will be meeting with Perak Mentri Besar Datuk Seri Ahmad Faizal Azumu on Aug 27 to discuss the problems faced by the smallholders, particularly on the land conversion requirement.

“With regards to the land conversion, the ministry really needs the state governments’ cooperation to expedite the process,” she said.

As of June 30, only 42 per cent of the 5.84 million hectares of oil palm plantations had obtained the MSPO certification. — Bernama

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