Oil palm seedlings must be sourced from MPOB

By Nigel Edgar
Seeds from fallen oil palm fruits not allowed to be planted
KUCHING: Local oil palm planters are not permitted to plant seeds from fallen oil palm fruits due to the government’s quality control.Planters who disregarded this could be charged with possessing illegal or unlicensed seeds as stated in the Malaysian Palm Oil Board (MPOB) Act 1998.

MPOB Sarawak Regional Head, Sulim Lumong told The Borneo Post yesterday that farmers must get their seedlings from the Board.He pointed out that farmers found having or planting illegal or unlicensed seeds can be convicted in court. If found guilty, offenders can be compounded not more than RM250,000 and/or jail not more than three years. “Apart from planning, researching and developing the palm oil industry in Malaysia, MPOB is also responsible in enforcing the MPOB Act,” he said. Sulim revealed that this year, a planter have been convicted of possessing illegal or unlicensed seedlings and three others were found guilty of operating illegal or unlicensed nurseries.“You can’t just plant oil palm like any other trees. You must have licences in distributing and selling the seedlings,” he pointed out. Therefore, under the second stimulus package, RM100 million was allocated by the government to aid small time farmers to apply for licence or to replant palm oil.

Under the second stimulus package, the government is providing aid of RM6,000 per hectare to small farmers to replant old oil palm estate.Small scale private farmers are those with plantation size 40.46 hectares or 100 acres. Sulim explained that this aid, implemented on December 1, 2008, was an addition to the Oil Palm Replanting Incentive Scheme which is RM1,000 per hectare for small farmers with trees aged 25 years and above. “Until December 2008, MPOB nationwide statistics show 46,061 hectares of small plantation were trees aged over 25 years old which involved 24,763 small farmers. “Palm oil trees aged above 25 years are not productive and have lower yield of quality stalk. Therefore, small farmers who have trees beyond 25 years old are urged to apply for the government’s aid so they cant plant new high quality seedlings,” he said.

The objective of the aid, Sulim further revealed, was to stimulate the economy with the involvement of small time farmers contributing to the input of raw materials.
The aid was also aimed to lower the replanting cost like covering the buying of seedlings, fertilizer and pesticide. It is also aimed to lower the palm oil stockpile to help in increasing the market value, he added.

The aid worth RM6,000 per hectare would include site preparation and management, seedlings, and farming input which includes fertilizer and pesticide. The programme was initiated in March this year and will end in December 2010 or until the allocation is finished. Application is a first-come-first-serve basis.

According to a printed statement from MPOB, here are two ways how eligible small farmers can make use of the aid.They can manage their own by choosing their own contractor to prepare the site and supply of farming input, and present the receipt or a certified letter to claim RM6,000 per hectare from MPOB.

To make it easier for the farmers, MPOB will advance of RM3,000 per hectare to start.
The second way is small farmers can leave all the management to MPOB including appointing of contractor. If the cost is less then RM6,000 per hectare, the remainder will be given to the farmer. If it is more, the scope of the aid will be limited. Therefore farmers, in this way, are required to sign an agreement letter between the contractor and MPOB. For more information on the aid, interested farmers can contact MPOB at 03-89251122 or 03-87694400, or go to website www.mpob.gov.my.

ECM Libra: CPO exports to be slower this month

KUALA LUMPUR: Crude palm oil (CPO) exports are likely to be slower this month following stronger production and festive season in Pakistan, according to ECM Libra. Pakistan had made heavy purchases of palm oil for August and September, the firm said in a research note yesterday.

ECM Libra said many factors like weather, poor fertilisation, practices and government replanting that might stem the growth in production numbers.
Last month, the CPO stocks stood at 1.3 million tonnes, the same level as in July. However, the research firm said that news reports on drought in India are likely increase demand for the commodity in the region.

Meanwhile, ECM Libra Investment Research has maintained its neutral recommendation on the property sector.It said while the property sector has bottomed out and was recovering, conditions were not sufficient to re-rate it.ECM Libra said its stock picks remained selective, preferring mid- to small-capitalised property developers where valua-tions were more compelling. “Among the picks are Sunway City, for its resilient property investment earnings while there is potential upside from recovering property development earnings, and Sunrise due to its strong brand name and prime landbank,” it said in its research note yesterday.

It said there was pick-up in commercial activities in August following the acquisition of a 50 per cent stake in Menara Citibank by Hap Seng Consolidated, as well as the sale of an eight-storey corporate block in Southgate commercial centre by Mah Sing to Koperasi Permodalan Felda Bhd.
ECM Libra said Glomac was also finalising the sale of a 30-storey corporate tower at its Glomac Damansara project to a government agency.

It said following a pick-up in property transactions in recent months, more developers were now planning new property launches. “Among them are IJM Land, Mah Sing, Selangor Dredging, Dijaya Corp, GuocoLand, MRCB, Metro Kajang, TA Enterprise and TSR Capital,” it said.
— Bernama