Sri Lanka is unlikely to lift the ban on oil palm cultivation in an election year that has much at stake if this should go ahead. This industry has already lost approximately US$35 million in revenue had the cultivation of proposed 20,000 hectares been carried out into 2024. The Oil Palm Growers Association during meetings [...]

Business Times

Election year a dampener on oil palm promotion

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Sri Lanka is unlikely to lift the ban on oil palm cultivation in an election year that has much at stake if this should go ahead. This industry has already lost approximately US$35 million in revenue had the cultivation of proposed 20,000 hectares been carried out into 2024.

The Oil Palm Growers Association during meetings with the relevant authorities and politicians are left baffled as the latter have continuously agreed on the importance of cultivating the crop but have not yet taken steps to lifting the ban. Recommendations have been made by an Expert Committee appointed by the Plantation Ministry to lift the ban.

Demonstrations have been carried out just recently as well against the cultivation of oil palm crop against continued demands by smallholders for the government to lift the ban that will help sustain a better livelihood.

Former Director Rubber Research Institute (RRI) and former Department of Plantation Management at the Wayamba University Prof. Asoka Nugawela told the Business Times that this industry has lost approximately $35 million in value terms that in effect could have been achieved had they continued cultivation making 2024 its 5th year of cultivation.

He noted that though the government realises the importance they do not want to set their finger on it “fearing a backlash.”  Prof. Nugawela who is currently the Director Technical for Lalan Rubber said that unlike in most other crops, oil palm is mainly grown by RPCs and not smallholders. But today the smallholders are lobbying to obtain government approval to cultivate the crop as they have learnt the benefits of it.

“It could help eradicate poverty among the people,” he said.

As the oil palm plants were ready by 2018 it could have covered an extent of 8000 hectares and if these were planted in 2019 it would have been about five years by now. The gestation period for oil palm is shorter at 3.5 – 4 years when compared with tea and rubber which in effect meant soon after the ban was imposed the industry lost two years of yields

In the 4th and 5th year, Prof. Nugawela said the industry could have produced 40, 000 metric tonnes (MT) and 80 000 MT respectively.

He also queried the need to limit the cultivation extent specifically for oil palm when compared with other crops.

Sri Lanka which currently imports 200 MT of palm oil each year for local consumption is possible to be generated within the country if the extent of the land area is increased to 50, 000 hectares, Prof. Nugawela said, adding that 4 MT of palm oil is generated from one hectare.

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