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MPOB takes tougher stance on oil palm seed scams

Posted by Flora Sawita Labels: , , , , , ,

THE Malaysian Palm Oil Board (MPOB) is proposing a heavier fine of RM2 million for criminals who deceive planters into buying and planting low yielding oil palm seedlings.

Currently, those found guilty are only fined up to RM250,000 or jailed up to three years, or both. "There is a need for heavier sentencing as the current penalty does not reflect the severity of the crime," said MPOB deputy director general Dr Salmiah Ahmad.

MPOB is now taking a more serious stance on oil palm seed scams as it is found to be one of the main causes for the country's average yield stagnating at four tonnes per hectare a year for the last 20 years.

Many smallholders have been duped but they cannot be blamed because it is difficult to differentiate a genuine crossbred seedling of dura and psifera (DXP) strains from fake ones.

These fake seeds will only yield five to 10 tonnes of fresh fruit bun-ches a year compared with DXP seeds, which will yield 25 tonnes.

Cross breeding DXP seeds takes time and they are sold for RM2 per seed. Malaysia's strategy to remain the most productive oil palm producer in the world is mainly buoyed by the government policy of using DXP seeds, tissue cultured and clonal palms.

Yesterday, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok launched the Malaysian Oil Palm Nurseries Association (Mopna) in Bangi, Selangor. He advised smallholders to be more discerning. "We must remember that whatever we plant will remain in the ground for the next 20 to 25 years. It is therefore absolutely essential that we get it right the first time, ensuring that only superior planting materials reach the fields," he said.

Under the national replanting strategy to reduce palm oil supply in the immediate months and boost supply in the longer term, RM200 million has been allocated to encourage the replanting of 200,000ha. MPOB has, so far, approved of 160,000ha for replanting this year.

Earlier this year, the Finance Ministry allocated RM50 million more to MPOB to supply seedlings and fertilisers to independent smallholders who do not get support from other government agencies like Felda, Felcra or Risda. It works out to be RM6,000 per hectare spread over three years.

Mopna president Azhari Wasi Mohd Jamli said half of its 60 members already received MPOB's oil palm nursery certificate of competency.

Plugging the palm oil leak

Posted by Flora Sawita Labels: , , ,

Malaysia plans to step up enforcement against oil palm seed scams and theft of palm fruits and oil, which are costing the country billions in lost revenues.

Plantation Industries and Commodities Minister Tan Sri Bernard Dompok has told the Malaysian Palm Oil Board (MPOB) to buck up as these crimes have been going on for a long time.

"I want MPOB to step up enforcement immediately. All these oil palm seed scams and oil thefts must stop," he told Business Times in a recent interview in Putrajaya.

For a start, Dompok gave the green light to MPOB to licence palm oil transporters. This is allowed under the Malaysian Palm Oil Board Act 1998. "I want to tighten up the loopholes. The transporters need to be licensed and we'll put in place a whistle-blowing scheme. Once MPOB board of directors give their consensus, it will come back to me for my signature and then we'll have it gazetted," Dompok said.

The companies will also have to install global positioning systems on their tankers to keep tabs of their movements. "Transporters must take responsibility for the actions of their drivers and pay the price if their tankers are involved in illegal activities," he said.

Under MPOB (Quality) Regulations 2005, whoever steals or contaminates crude palm oil can be fined up to RM250,000 or two years' jail or both.

In a separate interview, Palm Oil Refiners Association of Malaysia (Poram) acting chairman Yong Chin Fatt said refiners have suffered much from oil pilferage. Refiners have no way of knowing whether the palm oil brought in by tankers are stolen or not.

"We're all established and we only accept oil that come in tankers, not in drums. These tankers come with the necessary documentation from the millers," he said. "In fact, we incur additional costs when we're duped into buying contaminated cargo. We suspect such highly-organised crimes, that have spread to Sabah and Sarawak, are by syndicates. We appeal for more stringent enforcement," he added.

Dompok has also told MPOB to be more vigilant in stamping out oil palm seed scams. "These scams have serious implications on the livelihood of thousands of smallholders and the country's average oil palm yield," he said.

It was recently reported that there are syndicates deceiving planters into buying low-yielding seeds that are not dura and psifera (DXP) crossbreds currently sold by the 19 genuine producers.

Last year, MPOB managed to seize 6.13 million fake DXP seeds and this amounted to RM11.35 million in opportunity loss for genuine producers. However, the potential revenue loss to oil palm planters runs into the billions in the long term as the fake seeds will not produce as much fruits.

Malaysia's oil palms are the most productive in the world because of government policy to use high-yielding crossbred seeds of the mother palms of the DXP strains. Regular seeds from existing oil palm trees will only yield five to 10 tonnes of fresh fruit bunches in a year compared with 25 tonnes for DXP seeds. Cross breeding of high-yielding DXP seeds takes time and the seeds are sold for RM2 each.

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