Debate on
oil palm
Oil palm undertaken after careful study
The oil palm plantations in the Udugama Group was set up in the early '70s
by the Sri Lankan government with a view to reducing the country's dependence
on imported oil. Oil palm was cultivated over 30 years ago in our country.
In the last 20 years, the area under oil palm has grown to 2,050 Ha
with Nakiadeniya being the largest producer with 1,095 Ha.
Watawala Plantations Ltd has carefully drawn up a replanting programme
to increase the area by 150 Ha per year for the next five years, thus by
2005 the anticipated number of hectares would be 2,800 with an annual production
of 75,000 tonnes of oil. The Udugama area has several small growers who
supply their fresh fruits for processing to the centralized mill in Nakiadeniya.
The current annual production is around 4,000 tonnes of crude palm oil
and around 1,000 tonnes are from the small growers.
There other companies - Elpitiya, Namunukula and Agalawatte Plantations
- have embarked on oil palm planting in the Nagoda and Matugama districts
as an alternate crop for rubber which is a sunset crop with little or no
future and are expected to plant up to around 3,000 Ha this year with an
investment of Rs. 550 million. A mill is to be constructed at Agalawatte
at a cost of around Rs. 200 million, which would process the fruits from
these estates.
Diversification
The trading results for rubber at present are unfavourable and the future
is uncertain. The plantation companies do not see signs of a turnaround.
Comparatively, oil palm is a very profitable crop. (Even when rubber prices
were good, profits from oil palm were more than four-fold in Malaysia.).
The diversification from rubber to oil palm by RPCs is being carried out
after undertaking comprehensive feasibility studies by teams of professionals.
It is certainly not being done on a random basis. The decision to diversify
from rubber to oil palm is being undertaken after careful consideration
of all factors, including the viability of the companies and the income
of the workers.
The cultivation of oil palm will be in the southern region of the country
where due to heavy rainfall, tapping is restricted during many months of
the year, thus adversely affecting the income of rubber workers. This does
not happen in the case of oil palm workers. There is also a shortage of
workers, especially tappers in the southern region, which has resulted
in loss of revenue to the companies as well as to the country.
In regard to ecological problems, there is no indication whatsoever
that there has been any adverse impact consequent to large scale planting
of oil palm in Malaysia and Indonesia. As for the availability of firewood,
there should be no problems since only part of the land would be diversified
into oil palm. It must also be mentioned that the industry is gradually
moving away from using rubber wood as firewood and pursuing value addition
due to the increasing demand for rubber wood products which includes furniture.
Independent study
The Coconut Research Institute (CRI) was commissioned by the Ministry of
Plantation Industries to conduct a study as there were public fears expressed
over the cultivation of oil palm. Their report was published in August
2000 and concluded that oil palm has no adverse effects on the environment
and in particular to water. There are a large numbers of wells in the oil
palm cultivated area of Nakiadeniya Estate. All the wells are located in
valleys. The water level of all the wells are within one metre from the
surface. Some of the valleys are found to be waterlogged while there is
considerable water flow in small streams within the estate.
The perception of the villagers living around Nakiadeniya Estate about
the oil palm cultivation is that with the planting of this crop there would
be depletion of water in the area. There is no such evidence. On the contrary,
the report submitted by CRI categorically states that the cultivation of
oil palms in the Nakiadeniya has not adversely affected the ground water
level or the water flow of the streams.
The plant density of tea is 13,500 per Ha, for rubber 500 Ha and oil
palm 148 per Ha. Studies have shown that the consumption of water in oil
palm is less considering the evapo-transpiration rate.
Currently, the local consumption of crude palm oil is approximately
80,000 metric tonnes. Almost 90% is now imported. The local production
of crude palm oil will save valuable foreign exchange as it is an import
substitution.
Malaysia and Indonesia have cultivated an extent ranging from 1.5 million
Ha to 3.5 million Ha, and planting at an annual rate of 5 to 10 thousand
of Ha. Large extents of the Sumathra jungles in Indonesia are being progressively
planted with oil palm.
(The above are extracts of a presentation made by S. Sri Kumar, General
Manager, Watawala Plantations Ltd at the Ceylon Chamber of Commerce auditorium
last week on the benefits of oil palm plantations).
Investigate oil palm cultivation
There have been several articles on the controversies surrounding oil palm
and also its benefits. Officials of the rubber industry appear to have
stressed the detrimental effects of oil palm cultivation while the ADB
seems to have endorsed this as a third crop besides tea and rubber. A report
on oil palm cultivation has been prepared by the Coconut Research Institute
at the request of the Plantations Ministry but this report has come in
for some criticism.
The state appears to have granted approval for the cultivation of oil
palm setting aside criticism from some sections of the public. Investments
have been made in several oil palm nurseries in the south but armed men
have caused damage to these nurseries valued at millions of rupees.
It appears that the state has failed to investigate not only the cultivation
aspects but also processing aspects in relation to environmental impacts.
Both components should have been investigated and examined before investment
decisions were made. Some consideration appears to have been given to sociological,
economic and environmental factors in the cultivation of oil palm but hardly
any consideration has been given to the processing aspects.
Effluents from the processing of palm oil, the environmental impact
due to these effluents, the cost involved in the treatment of effluents,
minimising the impact, the availability of suitable locations for the processing
plants vis-a-vis the siting of the cultivation area, etc. have not been
mentioned. The technical, environmental, sociological and also the economic
viability of oil palm cultivation should be investigated and discussed
with all concerned, along with the corresponding observations and estimations
of these aspects in the processing component also.
Dr. K. Sivasubramaniam
Colombo 5
Respect RRI head's view on oil palm
Letter
By Clinton Rodrigo
The Sunday Times Business last week carried a response from Malaysia's
Primary Industries Minister, Datuk Seri Dr. Lim Keng Yaik on a statement
of fact made by Dr. L.M.K. Tillekeratne, a respected scientist and head
of the Rubber Research Institute of Sri Lanka. I totally disagree with
Dr. Lim's conclusions with regard to rubber versus oil palm in the Sri
Lankan context.
Dr. Tillekeratne vividly explains his point of view and draws his conclusions
on considerations pertaining to the vastly differing criteria, circumstances
and situation prevailing in Sri Lanka.
Malaysia is now hoping to grow rubber more rapidly at the expense of
oil palm. Besides other disadvantageous features, oil palm has an effect
of drying up the water availability in the soil. Thus we in Sri Lanka cannot
afford to desertify our land further as we even now have only about 18
percent of its total land extent under forest cover as against Malaysia
and Indonesia having over 55 percent of land in forest reserves. In this
scenario Sri Lanka cannot afford to cause greater damage to its eco-system
and plans have to be carefully and systematically implemented under scientific
observation.
I understand that the Malaysian government now pays a larger subsidy
for replanting rubber as against a lower subsidy for oil palm. This alone
suggests that the Malaysian government is keen to restore its earlier large
rubber land extent and have oil palm as an alternative crop. It was only
a few decades ago that Malaysia was the largest rubber producer in the
world but today it has fallen to about fourth position where production
figures are similar to India. In effect I was informed that Malaysia now
imports rubber from Thailand to meet even their own basic needs.
The other important factor that need to be stressed is that rubber is
very useful for Sri Lanka – given the extent of forest cover – and for
processing treated rubber wood for furniture, checking soil erosion due
to its dense foliage cover and using it to cover crops on the ground. Also
it is useful for the supply of solid fuel for diverse use on the large
tea plantations in Sri Lanka and meeting the firewood needs of villagers.
In addition it is a crop where value can be added to the raw material (rubber)
by manufacturing surgical gloves, condoms, tyres, tubes, etc. in which
a large percentage of local production is utilised with the intention of
furthering the value added production of this very useful and multifaceted
crop.
The Malaysian view is out of place since comments by the head of Sri
Lanka's Rubber Research Institute were made on the criteria applicable
to Sri Lanka and not Malaysia.
(The writer is a retired planter and former senior board chairman of
JEDB boards who says he has been a practical rubber, tea and coconut planter
and has held senior positions in the then nationalised commercial plantations
of Sri Lanka while also having academic knowledge as an agriculturist in
addition to awareness on the oil palm issue.)
Debug moves into new corporate HQ
By Akhry Ameer
Debug Computer Peripherals, a name synonymous with computer accessories
for over a decade, is widening its net with a new corporate headquarters
and plans to move to Negombo, Kurunegala and Galle in the next three months.
"We need to focus on developing IT literacy levels. This can only be
achieved if it is started early and brought into the school education system
and into every core aspect of the country, not just confined to Colombo.
Imagine the opportunities that could be created if the majority is IT literate?"
noted Moiz Najmudeen, the company's managing director.
Debug moves into its spanking new headquarters at Wellawatte this week
and at the same time is building on an all-island focus. Currently it has
a branch in Kandy and two value added retail outlets at Liberty Plaza and
Nugegoda.
Having started as a modest operation in a small office room dealing
in computer accessories, the company is now a value added distributor/sole
agent for some of the major brands in the IT arena such as Epson, Seagate,
D-Link, Cisco Systems and Samsung Digital.
Attributing Debug's success to teamwork and adherence to principles,
Najmudeen said, "In 1991 we realised the field had much scope and started
bringing in professional disciplines like marketing. Thereafter we went
through a programme of change based on the principles of Kaizen and transformed
our people and processes to focus on service excellence in everything we
do."
"In the industry today products are similar and in Sri Lanka people
sell whatever they can get hold of, but our strong belief in consumer protection
and our commitment to provide genuine, reliable and quality products and
solutions backed by an efficient after sales service are factors that brought
us success. In fact the flooding of the market with cheap products helped
us to a great extent."
Debug plans to concentrate on areas within the core business of IT.
The company will venture into marketing of PABX, phone and radio communication
systems; software development; print for pay solutions where the printing
industry and corporate companies can move towards digital printing using
IT; and all-island retailing of non-vendor specific IT solutions based
on service excellence.
Emirates' offers exciting holidays as prizes
Emirates is throwing its weight behind this year's Dubai Shopping Festival
with a major on-board promotion - in which air travellers can win top holiday
prizes.
Each week in January and February, one lucky traveller on an Emirates
service to Dubai chosen at random will win a prize holiday for a family
of four - and the campaign reaches its climax with a draw for the grand
prize at the end of the campaign.
The nine prize holidays, one a week, feature return economy flights,
five nights' bed and breakfast in a sea-view room at Le Royal Meridien
Beach Resort and Spa, transfers by chauffeur-driven car, an Arabian Adventures
city tour, safari, and meet and assist on arrival. Everyone who enters,
even the nine winners, is eligible for the grand prize, also for two adults
and two children.
Entry forms will be placed in every seat pocket from 1st January for
travellers to fill in and hand to crew, or mail to the airline, an airlines
press release said.
Shell's new operations director
Dr. Mahesha Ranasoma has been appointed operations director of Shell
Gas Lanka Ltd (SGLL) and Shell Terminal Lanka (Pvt) Ltd in line with the
company's commitment to develop local staff to accept key leadership positions
in the business in Sri Lanka and globally.
He was earlier the distribution manager at Shell Gas. Shell said that
Ranasoma will be part of its management team and is the third Sri Lankan
to be appointed as a working director. Except for two members of the staff,
the rest of the management team now at Shell are Sri Lankans.
Smart Media goes high-tech with Affno
Sri Lanka's Annual Report Company, Smart Media presented a preview of its
intranet and extranet built by Affno – the software engineering company
specialising in e-business.
Smart Media's CEO, Rochelle Kannangara, making the presentation at a
recent high-level meeting, said the company's latest high-tech investment
would be launched by June this year, according to a Smart Media statement.
Explaining the rationale for their high-tech software investment, Ms.
Kannangara said that every year Smart Media tries to see how they can add
more value to clients.
"It is this constant search for ways in which to add value that led
us to realise that we can reduce some of the pressure our clients experience
during the production of an annual report." "In essence this new software
system would act like an intelligent project manager for our clients. Once
schedules are agreed upon the system will automatically track the progress
and show the client graphically the status of each task. So the client
can take timely action if any task is running behind schedule.
Likewise a large team from the client's end gets involved in the annual
report production process." Affno's CEO, Suren Kannangara, said Smart Media
had a good system working very well for them and there was really no need
to change it. "So what Affno did was to study their existing system and
build the software for it, which simply enhances the whole operation at
Smart Media giving it a turbo boost as it were, rather than impose any
new systems on them."
Smart Media and Affno are affiliated companies but are independent operations.
Foreign LP gas firms gain as India plans subsidy
cut
By Himangshu Watts
NEW DELHI - (Reuters) - India plans to raise the price of kerosene and
cooking gas every six months after April to phase out subsidies that add
up to $2.76 billion a year, a government source told Reuters last week.
Phasing out the subsidies will help international oil firms, which have
set up facilities to import and sell cooking gas in India but are facing
huge losses as they cannot compete with subsidised sale by state-run firms.
Bharat Shell Ltd, 51 percent owned by Shell, Caltex SPIC India Ltd,
Elf Gas India Ltd, Mobil Peeves Company and some local companies have set
up facilities to import a total of one million tonnes of LPG, but were
using barely 30 percent of their capacity.
They have invested 6.5 billion rupees in port facilities and four billion
rupees in storage and other infrastructure and are waiting for subsidies
to fall to make their operations viable.
After April, subsidies will be disbursed through state-run petrol and
diesel retailers, Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum
Corp and IBP, the retailing firm in which the government will soon divest
equity.
The annual subsidy bill for kerosene is 66.30 billion rupees, while
the subsidy on liquefied petroleum gas (LPG) amounts to about 66.90 billion
rupees a year if the oil price is $25 a barrel.
From April, India will launch the second phase of oil sector liberalisation
in which the administered price regime for petrol and diesel would end,
private firms would be allowed to retail all fuels and subsidies will be
phased out in three to five years.
"By March, we will announce the price of kerosene and liquefied petroleum
gas effective from April 1. Subsidised products will only be supplied by
the existing oil marketing companies," said a government official who did
not want to be named.
These companies will be paid the difference between cost price and the
selling price by a budgetary grant from the finance ministry, he said.
The cost price will be determined by considering the cost of importing
the same product at a designated port, freight from the port using the
cheapest available means of transport and the cost of storage and working
capital, the official said.
To ensure that the benefit of subsidies is passed on to the consumers,
the government will continue to fix the distributors' commission for LPG
until the subsidy is phased out.
Subsidised kerosene will continue to be sold through the public distribution
system. The government wants to settle the subsidy claims of the oil companies
within 45 days on a provisional basis and settle the final payment after
auditing the oil firms' accounts.
Top global marketing professor in Colombo
Dr. S. Erevelles of the Anderson Graduate School of Management, University
of California, Riverside, described as one of the most powerful speakers
on management in the world, is conducting seminars once again in Colombo.
The first one is on February 6 on "Strategic management and leadership
in the new economy" and is expected to be attended by CEOs, directors and
senior management, followed by a second one on "People management and service
excellence in the new economy".
The seminars are organised by the CIMA Sri Lanka Division and the Centre
for Global Leadership Inc (USA).
Arunalu scholarship award for Saminda
Saminda Dilhan Gune-wardena, a 12 year old student of Panadura Royal College,
has always enjoyed the unique privilege of being one of the brightest students
in his school. Last year, he earned the rare distinction of being Sri Lanka's
No. 1 year 5 scholarship student. Saminda scored the all-island highest
marks at the year 5 scholarship exam., thus marking his name in Sri Lanka's
history.
Saminda also happens to be a Commercial Bank Arunalu Account holder.
This is a special account exclusively for growing up children with lots
of unique features. Arunalu has a special scheme to reward year 5 scholarship
stars. All Arunalu account holders who pass the year 5 scholarship exam
with 1st, 2nd or 3rd places in their schools are eligible for this special
rewards scheme.
Recently at a Ceremony held at Commercial Bank, Saminda was given his
special Arunalu reward for his achievements.
Saminda Dilhan Gunawardena (3rd from right) scored the all-island highest
marks at last year's year 5 scholarship exam. Because he was a Commercial
Bank Arunalu account holder, Saminda received a special reward from the
Bank.
Two-Wheel Tractors from UMLL
United Motors Lanka Limited (UMLL) is offering a new type of two-wheel
tractor mainly for transport purposes a press release said. The "UniMo"
EMEI 7A tractor, which has been successfully marketed in Sri Lanka by United
Motors for almost a decade has been upgraded to meet the requirements of
a new section of the business and agricultural community.
The tractor owes its success story to its performance, in terms of its
low cost maintenance, easy operation, and the availability of spare parts
and the after sales service offered by UMLL.
"United Motors introduced the two wheel tractor in 1992 mainly for the
agricultural sector of the country and it was well received because of
its hardiness and versatility. But ten years down the line, we feel that
a tractor is not merely an agricultural tool but also very handy when it
comes to transportation. Hence, the new changes to the tractor."
The new look of the two-wheel tractor include signal lights, horn, side
mirrors and an upgraded clutch system that enables easy mane-uvering and
accessibility. It also has better pulling power and is considered to be
the fastest tractor with a speed of 17 kilometres an hour.
"This would be ideal for small scale entrepreneurs who require a safe
and affordable mode of transport. Most importantly, it would be an ideal
vehicle for those in the Estate sector and Mahaweli settlement areas who
may use it as a means of transporting people as well as goods.
The customers have the opportunity of choosing from three types, which
have their unique features.
The "UniMo EMEI 7A Super" tractor while powered by a Japanese style
engine is easy to handle because of its lightness. The "EMEI 1OA Super"
is the only lightweight hand-tractor to have a driver's seat.
The "UniMo Seifeng GN 12L" tractor also has a driver's seat and an engine
of 12 horse power.
The tractors are offered at an affordable price and come with a 6-month
guarantee. United Motors is also offering the customer three free services,
a set of spare parts and a set of tools for the tractor.
Alpha Pensonic CD players launched
Alpha Industries Ltd., marketers of the Pensonic Household appliances in
Sri Lanka launched their Audio range to the Sri Lankan market recently
a press release said.
Pensonic Industries SDN, BHD has the distinction of being Malaysia's
pioneer in local branded home appliances. Established in 1965 Pensonic
has emerged as being a manufacturer and marketer of high quality household
appliances the press release further said.
The reliability of Pensonic products has been achieved through consent
product improvement generated by a team of qualified Engineers and highly
trained Technicians and use of high quality materials.
Pensonic has now moved overseas and has successfully secured distributorships
in the region and the Middle East. They were also appointed as the official
sponsors of the 16th Commonwealth Games held in Kuala Lumpur in 1998.
Alpha Industries Ltd., which is an ISO 9002 certified company has been
distributing Pensonic products since 1998.
Ericsson to supply GPRS solution to Dialog GSM
Ericsson has praised Dialog GSM on being one of the first operators in
the region to launch GPRS (General Packet Radio Service).
Ericsson Sri Lanka's Managing Director Bimal Dayal says "Dialog GSM
is one of the fastest growing cellular operators in Sri Lanka and we are
happy to have been chosen as their supplier for GPRS.
This is a major step towards 3G technology which will revolutionize
Mobile and Broadband Internet communications.
We are committed to supporting Dialog GSM with our global expertise
and technology leadership which we trust will enable Dialog GSM to offer
the Sri Lankan market the latest applications and services."
Dr. Hans Wijayasuriya CEO of Dialog GSM comments "we are proud to have
been able to place Sri Lanka on the world map of mobile communications
with the introduction of GPRS ahead of our counterparts in South Asia.
This achievement was made possible through the excellent and dedicated
efforts of Ericsson our GPRS supplier and our own team of engineers.
Our appreciation also goes out to our customers who continue to encourage
us in the introduction of new technologies to the Sri Lankan market.
We are happy we chose Ericsson to spearhead our GPRS project and look
forward to a long and fruitful relationship leading up to the introduction
of 3rd Generation Technologies in time to come." |
