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Breaking News-RTRS-INTERVIEW-Smaller premiums to slow "green" palm certification

Posted by Flora Sawita Labels:

JAKARTA, Aug 11 (Reuters) - An 80 percent dive in the premium paid for certified "green" palm oil could discourage producers from applying for certification, an industry official said on Tuesday, marking a setback in efforts to control deforestation.
Vengeta Rao, secretary general of the Roundtable on Sustainable Palm Oil (RSPO), said in an interview that the slide in the premium would slow down interest but was unlikely to stop certification givenn continued interest from some buyers.
Under fire from green groups and some Western consumers, the palm oil industry established the RSPO in 2004 to develop an ethical certification system that includes commitment to preserve rainforest and wildlife.
But while more certified output is ready for sale, demand is lagging behind. The RSPO has so far sold about 100,000 tonnes, or about 6.2 percent, of certified green palm oil since the first shipment last November.
As a result, the premium to conventional palm oil had slumped to $10-15 a tonne now from $50 in November, Rao told Reuters on the sidelines of an industry meeting.

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