25/05/2015 (Bernama) - The Plantation Industries and Commodities Ministry will propose to the Sarawak government to allow at least six palm oil mills to be built to cater to the needs of the industry in the state.

Its minister, Datuk Douglas Uggah Embas said the matter would be raised during a meeting with Chief Minister Tan Sri Adenan Satem on Monday.

"Based on our study, Sarawak needs at least six palm oil mills without plantations.

"The proposal takes into consideration that oil palm are cultivated largely on native customary rights land by smallholders, and a minimum of 4,000 hectares (10,000 acres) of oil palm is needed to supply a single palm oil mill," he said.

Uggah said the ministry had identified suitable sites for the mills.

"Where are the sites? Let me inform the CM (chief minister) first," he told reporters before opening of the Sarawak Oil Palm Smallholders Transformation and Development Programme here today.

He said the need for the new mills was also raised by the smallholders during the programme as they were forced to sell their harvest of fresh fruit bunches to collection points.

The price difference between a collection centre and factory is nearly RM100, he added.

Uggah also urged the smallholders to set up a cooperative to market fresh fruit bunches and fetch a better price for their harvest.