12/12/2012 (NST) - Palm oil millers in Sarawak, citing rising cost in doing business, will raise their processing fees from RM45 to RM50 per tonne of fresh fruit bunch (FFB) from Jan 1.

The millers, members of the Sarawak Oil Palm Plantation Owners Association (SOPPOA), said the introduction of the health insurance scheme for foreign workers, implementation of minimum wage, rising cost in production, a drop in crude palm oil prices and "other inflationary factors", were expected to severely impact the oil palm industry next year.

SOPPOA in a statement yesterday said that it had written to Health Minister Datuk Seri Liow Tiong Lai as well as State Secretary Tan Sri Mohd Morshidi Abdul Ghani last month to register their objection to the implementation of the insurance scheme and had appealed for an exemption.

The objection was due to only Sarawak being subjected to it while the industry in the peninsula and Sabah were exempted.