Smallholders levy supporting oil palm association

 By SHIRLEY MAULUDU

THE K4 levy contribution by oil palm growers was put towards supporting the Oil Palm Industry Corporation (OPIC) in its operations, acting general secretary Leslie Wungen said.

Wungen said OPIC could not receive direct budgetary support from the government because of provisions under the OPIC Act, which limited OPIC from accessing government support.

“Consequently, OPIC was relying on the K4 levy contribution from the growers as determined by the Minister for Agriculture and Livestock for OPIC’s operations throughout the project areas and secretariat,” Wungen said. 

However, he added that the levy fee contributed by the growers was considered inadequate by OPIC board.

Thus, he said, milling company representatives on OPIC board, volunteered to top up with matching the fee to ensure OPIC continued its operations.  

Wungen said that following concerns raised by the Papua New Guinea oil palm growers association who argued that they should not be paying the levy fee to OPIC.

“The smallholder growers pay a levy fee of K4 per tonne of fresh fruit bunch (FFB) to fund OPIC’s operations throughout the project areas and secretariat. The growers are fed up with this levy fee.”