There may have been a planned conspiracy mooted by some European countries to slow down the progress of the local agro sector and the ban on oil palm cultivation could be attributed to this, said Ambassador of Indonesia, Dewi Gustina Tobing.
She was speaking at the Annual General Meeting of the Palm Oil Industry Association (POIA) on Friday.
She said that countries such as Indonesia, Malaysia and India too are investing heavily in the industry while in the island the plantation is banned.
In general, the palm oil industry contributes to production, workforce, and export value. The palm oil industry also benefited energy
security and increased the people’s welfare..
The palm oil industry’s contribution to Indonesia’s GDP continues to increase yearly.
Palm oil-based products are used by people around the world 24 hours a day. Consumers also use food products containing palm oil.
In 2021, the use of palm oil for food in China accounted for 66% of its total use, in India 96 percent, in Pakistan 98 percent, and in the European Union 36%
She said that she has been in Sri Lanka for three years and feels Sri Lanka is her second home. “I see Sri Lanka as a country with much potential that needs to be developed in the future.”
Oil palm plantations are generally developed in remote, peripheral, and underdeveloped areas, as well as degraded land (ghost towns).
Thus, they are often considered pioneers in economic activities.
The growth of oil palm plantation activities helps propel other economic sectors, such as the service sector, such as transportation services, financial/banking services, and intercity trade services.
This shows that oil palm plantations do not cause rural areas to be underdeveloped. Instead, oil palm plantation development can transform underdeveloped areas into new centres of economic growth in rural areas.
Another proof of higher and more stable oil palm smallholders’ income is their ability to repay their debts/loans (to finance production costs) before the maturity date.
“Hence permitting palm oil to be grown again in Sri Lanka will to help revive the agro sector.”
