Sri Lanka imports around 230,000 MT of oils and fats each year for consumption and for industrial and other purposes accounting to over Rs 30 billion.
“However, if the Government encourages the cultivation of local oil palm plantations it can play a significant role in import substitution,” said Ambassador of the Republic of Indonesia Dewi Gustina Tobing at the International Symposium on Sustainable Plantation Management in Colombo recently.
Minister of Plantation Industries, Minister Dr. Ramesh Pathirana was also present.
According to data published by the Palm Oil Industry Association of Sri Lanka (POIA-SL), as for the importance of oil palm, 50% of the packaged products on sale at any supermarket use palm oil. Therefore, the demand is huge. Sri Lanka’s annual edible oil requirement is approximately 160,000 MT. “The country produces around 44,000 MT of coconut oil and 18,000 MT of palm oil, leaving a deficit of 98,000 MT in its edible oil requirement. Per capita consumption of edible oil in Sri Lanka is around 10.4 kg per annum.”
She also said that though some in Sri Lanka say that oil palm plantations could create an environmental impact, it’s not true as Indonesia and even India are engaged in largesse plantations for several decades with no negative impact created for the environment.
“I have a good example of how Good Hope, a subsidiary of Carson Cumberbatch of Sri Lanka, which has a land bank of 140,000 hectares in Indonesia, has managed their oil palm plantations located in four provinces in Indonesia adhering to sustainable practices.”
She said that oil palm is by far Sri Lanka’s most profitable crop. Coconut generates Rs 140,000 per hectare per annum, while tea and rubber generate Rs 45,000 and Rs 50,000 respectively, whereas oil palm generates Rs. 514,000 per hectare per annum.
It is a fact that the palm oil sector has been proven to be able to improve people’s welfare and reduce poverty. The Industry is able to absorb up to 4.2 million direct labor and 14.3 million of indirect labor, while oil palm plantations run by independent smallholders can absorb 4.6 million people.
In addition, since 2000, Indonesia’s palm oil sector has liberated 10 million people from the poverty line, including at least 1.3 million people living in rural areas. Regions that are dealing with palm oil have lower poverty rates than other regions.
Meanwhile, in terms of productivity, palm oil is able to produce 6-10 times more compared to other vegetable oils.
