23/11/2012 (Borneo Post) -  government has no plan at the moment to build palm oil mills specifically for smallholders in Tamin or Telang Usan

Assistant Minister of Land Development Datuk Gramong Juna said the reason being the unfeasibility to build such facility specifically for smallholders if their holdings were scattered all over the state. There is, however, a palm oil mill with the capacity to process 180,000 tonnes of fresh fruit bunches (FFBs) a year in the Tamin constituency.

Realising the shortage of processing capacity of existing mills, the government through Malaysia Palm Oil Board (MPOB) has also approved another application to build a new palm oil mill in Tamin this year with a processing capacity of 330,000 tonnes of FFBs per year.

This new mill is expected to be operational by 2014 and would be able to cater for the smallholders in the area.

“The government does not intend to get directly involved in the development of the palm oil industry. The policy is to encourage private sector involvement in the industry,” explained Gramong (BN-Machan) when responding to questions raised by Joseph Mauh (BN-Tamin) and Dennis Ngau (BN-Telang Usan) Wednesday.

Mauh had asked whether the government had planed to build a new palm oil in Tamin as the available mills were deemed unable to cope with the increasing number of smallholders.

Dennis also asked whether there were any plans by the government or private companies to build new palm oil mills in the Baram district.

Gramong said that MPOB had approved one application to build a new palm oil mill with a processing capacity of 240,000 tonnes of FFBs per year in the Baram. The new mill would be operational in 2014.

“Currently, one palm oil mill is operating in Baram District with the processing capacity of 170,000 metric tons of FFBs per year. The combined processing capacity of 410,000 metric tons per year from these two mills should be sufficient to process the FFBs produced by the smallholders in the Baram District,” he said.

On another note, Assistant Minister of Land Development Datuk Abdul Wahab Aziz said that Sarawak Land Consolidation and Rehabilitation Authority (Salcra) had paid dividend amounting to RM121,795 to the scheme participants in Ulu Krian, RM70,149 for Babang and RM322,769 for Awik this year.

“Oil palms in these three areas were planted from 1993 to 1996 and will continue to have a productive lifespan for another six to nine years. The ability of an estate to pay loan depends on its achievements and future price of palm oil.

“In addition, Salcra would ensure that not only the loans would be paid within 25 years, but landowners would continue to receive the dividends,” said Abdul Wahab (BN-Kalaka).

He was responding to a question raised by Ali Biju (PKR-Krian) in regards to bonus and dividends paid by Salcra to participants in the area.

He said he was concerned as to whether the participants could service their loan within a 25-year period which would soon end.