Palm oil groups form coalition against critics

Malaysian and Indonesian palm oil producer formed a coalition in May in a bid to to counter campaigns blaming the industry for rapid deforestation in the region. The Indonesia-Malaysia Palm Oil Group comprises six organisations from the two countries, which account for 85 percent of global production.AFP (through Malaysiakini) quotes Mamat Salleh, chief executive of the Malaysian Palm Oil Association (MPOA), which is a member of the new group, as saying:

The group will enable us to get together to defend some allegations that were made by the NGOs… (The NGOs) have even influenced some of the big companies to boycott (the use of palm oil). It’s getting serious, we are not as bad as portrayed by those people.

Palm oil, one of the world’s most diverse raw products, used for biofuel, processed food and toiletries, is a key export for both Malaysia and Indonesia, bringing in more than USD25 bil in total in 2009.

This development comes shortly after Indonesia’s Sinar Mas was dropped as supplier following allegations it was not following environmentally sound practices.

It was reported that the coalition released a statement, saying they agreed “to engage with the existing Roundtable on Sustainable Palm Oil (RSPO) for a more practical scheme.” The RSPO, formed in 2004, seeks to to establish social and environmental criteria, including a ban on clearing forests in order to plant the crop.