31/12/2010 (Bernama) - The Malaysia oil Palm Dealers association (MOPDA) has expressed concern over the move by the Malaysian Palm Oil Board (MPOB) to bar dealers from buying and selling oil palm fresh fruit bunches (FFB).

MOPDA President Datuk Abdul Fatah Abdullah said the new rulling was not beneficial to the stakeholders, particularly dealers and the industry as a whole.

"We are deeply concerned about this despite objections being raised at the meeting last year with MPOB in relation to the proposed imosition of such condition in their respective licences of oil palm dealers," he told a press conference here Friday.

The buying and selling of FFB among themselves, this would result in loss of employment, income and the eventual folding of the enterprises, he said.

The MPOB rulling, said to take effect from tomorrow, was to give the opportunity for estates, smallholders and dealers to sell directly to millers, prevent small dealers from being monopolised by big dealers and enhance the quality of oil palm fruits so that the oil extractn rate would exceed 25%.

Abdul Fattah said the ruling would cause a lot of hardship to small enterprises due to their limited financial resaurces and logistics and small transportation problems.

"Therefore, we proposed an in depth study ought to be made by MPOB to resolve this problem of low oil extraction rate rather than imposing such ruling,

"Those millers who fail to achieve their targets will have to face the consequences including the need for mandatory takeover by the government in the interest of the industry," he said.

Abdul Fattah said MPOB must focus on the enhancement of oil yield extraction rate process through the introduction of new technology and good agricultural practices with the necessary support of government schemes to replace old, low-yielding trees.