Allan clears air on oil palm issue

AGRICULTURE and Livestock Minister Benny Allan made it clear yesterday that the government does not have any plans to buy oil palm plantations or participate in a big way yet.
Allan told Parliament this in response to questions from Nuku MP Joe Sungi over the government’s failure to participate in the country’s oil palm industry which was the leading commodity in the agriculture sector.
Sungi said it was “very disappointing” to see that all companies involved in the country’s oil palm industry were owned by foreigners or foreign companies.
“This is actually the sector that leads in country’s export revenue and PNG as a government needs to particulate in a big way so that it can increase its revenue base through the export of oil palm and the revenue can be paid as dividends to provincial governments to deliver services,” he said.
Sungi said oil palm was a very important commodity and asked if the government could clarify whether there were plans to buy a plantation and participate in a big way under the current government’s agriculture commercialisation programme.
Allan admitted that the oil palm industry was the leading commodity in the country’s agriculture sector but was owned by private sectors.
“Oil Palm is actually the leading commodity in the agriculture sector, but is dominated by private sectors and the government does not have any plans to buy back plantations.
“But when our cash flow situation picks up, we can look into that but the current approach government has taken is to review the Oil Palm Act to address some of the failures by government in this important industry.”
Allan said the first thing they were looking at putting in place was OPIC (Oil Palm Industry Corporation) board.
“For so long private sectors have dominated the oil palm industry and the department is now looking at reviewing this act quickly,” he said.
“We are putting together a board to be endorsed by cabinet.
“After board in in place, a review will takes place to address issues in the oil palm industry.”