Government wants better deal

The National Weekender
AGRICULTURE
Smallholder oil palm growers have been struggling for years but things are slowly changing for the better.

By MALUM NALU
THE Marape Government’s focus on ‘Taking Back PNG’ is deeply embedded in the agriculture sector – which is the backbone of Papua New Guinea to drive the country and economy.
Oil palm is the largest agriculture commodity in PNG, contributing about 40 per cent – K1.2 billion annually – of PNG’s export revenue in the agriculture sector.
However, the irony of it all is that the large multi-national companies who dominate the industry, operate in an unregulated industry.
The Oil Palm Industry Corporation (OPIC) only provides extension services to smallholder growers, whereas the big players control the industry. That is the concern.
Agriculture and Livestock Minister John Simon says the Marape Government is committed to reviewing the OPIC Act to bring about long-overdue changes within the billion-kina industry.
He said this last Saturday (January 23, 2022) to hundreds of oil palm block holders at Sarakolok in Hoskins, West New Britain, when opening the K1 million Sarakolok Bridge funded jointly by the West New Britain Provincial Government and OPIC.
Minister Simon was accompanied by West New Britain Governor Sasindran Muthuvel, Talasea MP Francis Maneke, Department of Agriculture and Livestock Acting Secretary Steven Mombi, OPIC acting General-Secretary Kepson Pupita and West New Britain Provincial Administrator Williamson Hosea.
The bridge is a welcome relief for block holders who have been suffering for many years because of transport difficulties in taking their fresh fruit bunches (FFB) to market.
“The Oil Palm Industry Corporation Act has been in place for a long time, and needs to be reviewed, as it only allows OPIC to provide extension services to the smallholder growers whereas the big oil palm companies operate in an unregulated industry,” Minister Simon said.
“OPIC, under the current legislative framework, cannot impose sustainable oil palm practice, collect levies, charge licensing fees, create regulations and standards, enforce compliance, impose sanctions and penalties, and prosecute offences.”
Minister Simon said MP Maneke has been pushing him for a review of the Oil Palm Act, “and before we go to the elections, we will ensure that this act goes before Parliament”.
“The act was supposed to have been reviewed by our predecessors, however, this has not been done,” he said.
“When the act is passed, you (growers) will no longer have to pay some of the fees that you are currently paying.”
Pupita said the industry was unregulated, hence, it was hard for the Government – through OPIC – to make money with which to help growers.
“This (unregulated industry) is why we are not getting the services that we want,” he said.
“However, with good leadership now at the national level, we are looking to change the law as it applies to the oil palm industry.
“The legislation will cover many issues, including overpopulation in oil palm blocks, which is creating social problems.
“The other issue is research and development.
“Oil Palm Research Association (OPRA) must be a Government function. The legislation also covers regulatory services within the industry.
“The oil palm that smallholders grow, in many cases, does not meet industry standards.
The Agriculture and Livestock Minister also told the blockholders that:
· The Government had allocated K10 million for road development in major oil palm provinces, including West New Britain, and would be pushing for K1 million of this to be allocated to Sarakolok;
·The Government had allocated K2 million for oil palm research and development;
· The Government had plans to build an oil mill for smallholders; and
· Lands and Physical Planning Minister John Rosso would be addressing their land issues.
The block holders are from all over the country and have settled permanently in West New Britain to work their blocks.
Minister Simon said the Marape Government’s commitment to the oil palm industry was indicated in K10 million in the 2022 budget for road development in the major oil palm-growing provinces of West New Britain, New Ireland, Northern and Milne Bay.
He said he would talk with OPIC about diverting K1 million of this towards road development in Sarakolok.
“The Government, under the leadership of Prime Minister, has been focused on ‘going rural’ ever since we took office in 2019,” Minister Simon said.
“We have to go and visit people in rural areas, we must go out and find out what their problems are, we must not leave anyone behind. Government services must reach down to everyone.”

  • Malum Nalu works with the Office of the Prime Minister