Earlier this month, the Palm Oil Industry Association (POIASL) of Sri Lanka had appealed to the government to allow the cultivation of oil palm to help stem the foreign exchange drain and mitigate food insecurity. Interestingly, the demand was voiced following the withdrawal of the ban on chemical fertilizers by the government following a country-wide anti-government protest against bad governance. Both bans have been seen as irrational, unwarranted and injurious.
Oil palm cultivation was banned in April 2021 on environmental grounds, based on a 2018 report. This report was “contestable” says Dr.Shatadru Chattopadhya, Managing Director at “Solidaridad Asia” and an international expert on sustainable agriculture and food systems. In his writings, Dr.Chattpadhyay seeks to direct the attention of stakeholders to scientific evidence, economic realities and compulsions, and the need to meet the global Sustainable Development Goals. He also pleads for a “rules-based, open, non-discriminatory and equitable production and trading system.” His contention is that the issue of oil palm cultivation should be seen in the light of these parameters and not in the light of unscientific, incomplete and biased information or propaganda by interested parties.
In its plea to the government, the POIASL had said: “Ours is a responsible, sustainable, eco-friendly industry that has the potential to transform Sri Lanka’s agricultural sector, and potentially even its agricultural exports, while definitely minimizing our reliance on imported edible oils. Therefore, we believe that continuing to suppress this potentially vibrant, high-performing industry, which can help Sri Lanka and Sri Lankans overcome the present challenges, is irresponsible, unfair and entirely unnecessary.”
Palm oil is used by Sri Lankans in almost every aspect of life; in their toothpaste, shampoo, soap, lipstick and confectionary. It is an ingredient in 50% of all consumer products and plays a central role in a large number of industrial applications. Though there is a theoretical possibility of substituting palm oil with coconut oil in the confectionery industry, it is practically not possible considering taste, quality and commercial viability.
Advantages
Delineating the advantages of oil palm cultivation over the cultivation of rubber, tea and coconut, Dr.Chattopadhyay says that oil palm can easily provide five times as much vegetable oil per hectare compared to alternative crops and, by doing so, spare land for agriculture. And palm oil sequesters more carbon per hectare than tea and coconut (though less than rubber).
The scientist says that there are Sri Lankan studies which show that per liter of palm oil requires less fertilizer and less water, than coconut, dry rubber or tea. “It is cultivated in areas with 2,500 mm rainfall, which exceeds its water need of ca 1,300 mm. Almost everywhere globally, palm oil mainly uses rainwater. There is no evidence of palm oil plantations leading to groundwater depletion,” he adds. And in Sri Lanka, oil palm oil cultivation does not use virgin land. It is cultivated on existing plantation land.
Erandathie Pathiraja of the Institute of Policy Studies (IPS) writes in her blog that oil palm is more efficient in oil production than coconut: 1 Ha of oil palm produces nearly 4 MT of oil while coconut produces 1 MT of oil.
“Further, the limited availability of lands restricts expansion of coconut lands. Therefore, a combination of coconut and oil palm can be considered to meet the demand for edible oil and the other products,” she says.
Oil palm cultivation covers only 12,000 Ha of land, less than 1% of the total agricultural land in Sri Lanka. Yet, it is seen a major environmental threat. Dr. Chattopadhyay cites a recent study (Current Biology, July 2020), which found that coconut oil production, by some measures, is more destructive than palm oil production. Coconuts affect 20 threatened species per million litres of oil produced, while palm oil affects only 3.8 species per million litres, he says.
The study cited above, also shows that most coconut growing countries were forested in the past but are no longer so to the same extent. Coconut expansion was the main driver of deforestation, Dr.Chattopadhyay contends. Indonesia and Malaysia, which produce around 83% of all palm oil globally, have 50 and 18.7 percent under primary forests, respectively.
The fact that oil palm cultivation could be a major employment generator is overlooked. Dr.Chattopadhyay draws attention to the fact that oil palm cultivation is a major employment provider in Malaysia, Indonesia, Ghana and Uganda. Oil palm cultivation is more profitable than coconut, rubber and tea cultivation. “Profitability from palm oil per hectare would be Rs. 605,000 compared to Rs. 269,600 for coconut, Rs. 2,000 for rubber or Rs. 45,000 for tea. This means that while using much lesser land and almost the same water level, oil palm can provide a much better financial return to a farmer,” he says and adds that workers too would get better wages as studies in Ghana and Uganda show.
Coconut Can’t Be Replaced
All this does not mean that coconut oil cultivation can be displaced by oil palm cultivation. According to Erandathie Pathiraja, 89% of the edible oil consumed by Sri Lankan households is from coconut. But there is a shortage of locally generated edible oils, which has resulted in the country’s spending Rs.37 billion on imports. Pathiraja recommends a balanced cultivation of coconut and oil palm, after ascertaining the environmental safety in regard to oil palm cultivation.
“A comprehensive analysis to ascertain the cost benefits of using different types of edible oils for different purposes is a priority. Availability of these facts will help consumers make informed decisions, address misapprehensions, and ensure the well-being of all Sri Lankans.” Patiraha says.
Need for Regulatory Authority
Giving concrete suggestions, Dr.Chattoadhyay says that first of all, the government must lift the ban on oil palm cultivation. Local production will save foreign exchange; farmers will have a profitable crop to cultivate and the consumer can get a low priced local product.
The government should set up a “palm oil mission” with a plan to produce 300,000 MT of palm oil. A special-purpose fund could be created with the help of international banks like the Asian Development Bank that will support the development of high yielding seeds and help set up a Sri Lanka Palm Oil Board that will produce a palm oil national plan and regulate oil palm production and trade.
Sustainability Framework
Following Malaysia, Indonesia and India, Sri Lanka should devise a “sustainability framework” for producing oil palm. The Indonesian Sustainable Palm Oil (ISPO), the Malaysian Sustainable Palm Oil (MSPO) and the Indian Palm Oil Sustainability (IPOS) framework offer models. In the main palm oil producing countries, producers are certified by external auditors against those standards, assuring that the oil palm is produced in a socially and environmentally sustainable way.
Sri Lanka may also choose to certify its oil palm producers under one of the voluntary certification standards like Round Table on Sustainable Palm Oil (RSPO), Rainforest Alliance or Fair Trade, Dr.Chattopadhyay suggests.
“The core of sustainable development is a strategy that aims to balance the different and competing needs of a nation’s environment, society, and economy. Oil palm contributes to 15 goals/sub-goals out of 17 SDGs. If the government, industry and NGOs join hands to give palm oil a chance in Sri Lanka, it can create an even bigger socio-economic impact than tea, coconut or rubber sub-sectors,” he submits.
