Industry needs govt help to grow

By LUKE KAMA
THE review of the Oil Palm Industry Corporation (OPIC) Act is underway and need the Government’s support to grow the industry that will bring greater benefits to the country, an official says.
OPIC acting general–secretary Leslie Wungen told The National yesterday that the Act was already under review as directed by a new OPIC board.
“The oil palm industry is now the best performing industry and is the biggest export earner for the country in terms of commodity and agriculture produce,” he said.
“But despite it being the best performing industry, most of the benefits that derive from the industry goes to the few milling companies operating in the country while smallholder farmers are deprived big time.
Wungen said the OPIC Act was long overdue for review because it was established at the time when the Government had a stake in the industry.
“When the OPIC Act was created, the State also had certain interest in the business and the Act provided for the State to retain certain benefits in terms of pricing, fees and levies.
“But when the State sold its stake to private interests, the legislation was not changed benefiting the private sector, especially the big milling companies.”
Wungen said the current legislation had created a situation where smallholder farmers lost around 43 per cent of their income to milling companies.