MARKET DEVELOPMENT
Palm Produce: Minister Declares Support for Local Producers
Palm Produce: Minister Declares Support for Local Producers
04/06/2013 (Nigerian Tribune) - The Federal Government, through the Federal Ministry of Agriculture, has declared that it remains resolute on the high tariff of 35 per cent import duty imposed on Crude Palm Oil (CPO) in order to grow the agricultural sector and diversify the economy.
Minister of Agriculture, Dr Akinwumi Adesina, said this during a visit by the Coalition of Oil Palm Value Chain Associations, including the National Palm Produce Association of Nigeria (NPPAN), the Oil Palm Growers Association of Nigeria (OPGAN), the Plantation Owners Forum of Nigeria (POFON), and the Vegetable & Edible Oil Producers Association of Nigeria (VEOPAN).
It will be recalled that some stakeholders in the food sector recently lamented purported insufficiency of oil palm produce in the country, urging the government to lower the import duty on the product.
They said that the tariff was “inhibiting the growth of multiple industries, including biscuits, vegetable oil, margarines, cereals, crisps, sweets and baked products, washing powder and cosmetics,” adding that it would create ripple effects on multiple industries and, in the long run, cause higher food retail crisis.
However, the coalition has accused the food stakeholders of sabotaging the economy through “the proposal by Malaysian Palm Oil Board and a Nigeria counterpart to establish tank farms in three Nigerian ports of Lagos, Port Harcourt and Calabar to import palm oil from Malaysia; clamour by Indonesian companies in Nigeria to lift the ban on importation of CPO; a proposal to reduce CPO tariff from 35% to 5% by Manufacturers Association of Nigeria; a proposal to give concession/waiver owners of plantation up to 2,000 ha to import CPO and a clandestine application and issuance of waivers to import crude palm oil and palm olein.”
The palm oil coalition said: “As we speak, the oil palm industry is in distress because the Nigerian government has not responded to the policy onslaughts of Malaysia and Indonesia. The policies are geared towards Nigeria patronising them that for the country to attain self-sufficiency in palm oil production. Since the first quarter of the year, we have witnessed increased importation of crude palm oil and refined products into Nigeria, which had crashed the domestic trade.
“The critical issues that we like to bring forth on this visit are the two debilitating issues of waiver and CPO imports through ETLS. These have become the two routes to killing our oil palm industry.”
The coalition urged the government to revoke all existing waivers and stop further granting of waivers to import CPO forthwith; apply the exemption clause in the ETLS regulation to levy imports from West Africa on the same tariff as applicable to imports from other regions; assist smallholders with bulk storage facilities, especially in areas with considerable smallholder clusters; exempt large-scale plantation development from income tax to enable reinvestment and accelerated development; consider a bailout incentive or palliative for plantation owners who have experienced adverse market conditions in recent times.
In his response, Dr Adesina, said: “When the issue of waivers came up for rice, Mr President was under enormous pressure to grant waivers for importations. He didn’t give the waivers.
“Today, Nigeria is on its way to self-sufficiency in rice production. We have to do the same with the palm oil industry.
“It is shameful that we are importing crude palm oil. We should be exporting.
“The fact that we are having a discussion on whether we should lower the tariff, so that we could be importing, makes absolutely no sense.
“Some make a case for those who need palm oil for processing. We are already paying a higher price because we have rising unemployment in our rural areas; we are spending a hard-earned foreign exchange in importing. We are paying a higher price and the livelihoods of rural areas producing palm oil are threatened. We are paying a higher price because the naira is weakened anytime we are importing.
He added that he was against reduction of tariff from 35 per cent, because every country must do what is in its interest.
“We cannot revive our rural areas if we are opening up our markets for everyone to dump every junk. The issue of ETLS is of great concern. ETLS in the region is to expand trade, but every country must do what is in its interest. We should be producing and exporting into those countries. We should not be using those countries as transit areas. Regional trade does not mean that we should import,” he said.
Minister of Agriculture, Dr Akinwumi Adesina, said this during a visit by the Coalition of Oil Palm Value Chain Associations, including the National Palm Produce Association of Nigeria (NPPAN), the Oil Palm Growers Association of Nigeria (OPGAN), the Plantation Owners Forum of Nigeria (POFON), and the Vegetable & Edible Oil Producers Association of Nigeria (VEOPAN).
It will be recalled that some stakeholders in the food sector recently lamented purported insufficiency of oil palm produce in the country, urging the government to lower the import duty on the product.
They said that the tariff was “inhibiting the growth of multiple industries, including biscuits, vegetable oil, margarines, cereals, crisps, sweets and baked products, washing powder and cosmetics,” adding that it would create ripple effects on multiple industries and, in the long run, cause higher food retail crisis.
However, the coalition has accused the food stakeholders of sabotaging the economy through “the proposal by Malaysian Palm Oil Board and a Nigeria counterpart to establish tank farms in three Nigerian ports of Lagos, Port Harcourt and Calabar to import palm oil from Malaysia; clamour by Indonesian companies in Nigeria to lift the ban on importation of CPO; a proposal to reduce CPO tariff from 35% to 5% by Manufacturers Association of Nigeria; a proposal to give concession/waiver owners of plantation up to 2,000 ha to import CPO and a clandestine application and issuance of waivers to import crude palm oil and palm olein.”
The palm oil coalition said: “As we speak, the oil palm industry is in distress because the Nigerian government has not responded to the policy onslaughts of Malaysia and Indonesia. The policies are geared towards Nigeria patronising them that for the country to attain self-sufficiency in palm oil production. Since the first quarter of the year, we have witnessed increased importation of crude palm oil and refined products into Nigeria, which had crashed the domestic trade.
“The critical issues that we like to bring forth on this visit are the two debilitating issues of waiver and CPO imports through ETLS. These have become the two routes to killing our oil palm industry.”
The coalition urged the government to revoke all existing waivers and stop further granting of waivers to import CPO forthwith; apply the exemption clause in the ETLS regulation to levy imports from West Africa on the same tariff as applicable to imports from other regions; assist smallholders with bulk storage facilities, especially in areas with considerable smallholder clusters; exempt large-scale plantation development from income tax to enable reinvestment and accelerated development; consider a bailout incentive or palliative for plantation owners who have experienced adverse market conditions in recent times.
In his response, Dr Adesina, said: “When the issue of waivers came up for rice, Mr President was under enormous pressure to grant waivers for importations. He didn’t give the waivers.
“Today, Nigeria is on its way to self-sufficiency in rice production. We have to do the same with the palm oil industry.
“It is shameful that we are importing crude palm oil. We should be exporting.
“The fact that we are having a discussion on whether we should lower the tariff, so that we could be importing, makes absolutely no sense.
“Some make a case for those who need palm oil for processing. We are already paying a higher price because we have rising unemployment in our rural areas; we are spending a hard-earned foreign exchange in importing. We are paying a higher price and the livelihoods of rural areas producing palm oil are threatened. We are paying a higher price because the naira is weakened anytime we are importing.
He added that he was against reduction of tariff from 35 per cent, because every country must do what is in its interest.
“We cannot revive our rural areas if we are opening up our markets for everyone to dump every junk. The issue of ETLS is of great concern. ETLS in the region is to expand trade, but every country must do what is in its interest. We should be producing and exporting into those countries. We should not be using those countries as transit areas. Regional trade does not mean that we should import,” he said.