Sri Lanka: Palm oil industry optimistic on cultivation ban reversal

Published 2024년 12월 10일

Tridge summary

Sri Lanka's palm oil industry is hopeful for the lifting of the ban on oil palm cultivation with the new government's focus on agriculture and poverty alleviation. The ban, implemented in 2021, has prevented the country from meeting 50% of its edible oil demand by 2025, as it imports over half of its annual consumption. The Palm Oil Industry Association (POIA) believes that lifting the ban could reduce import dependence and boost local production. However, it will take several years for imported seeds to grow into production. The POIA also emphasizes that the ban is harming the country's reputation and limiting potential economic benefits, especially in addressing agricultural shortages and creating jobs.

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Original content

Sri Lanka’s palm oil industry sounded optimistic on the possibility of having the ban on oil palm cultivation reversed as one of the key focuses of the new government is agriculture and poverty alleviation. With Sri Lanka being the only country in the world that bans oil palm cultivation but allows its consumption, Palm Oil Industry Association (POIA) President Rohan Fernando stated that the local industry is hopeful that the government would soon realise and rectify the inconsistency of the policy. If not for the ban, Sri Lanka would have been able to cater at least 50 percent of its edible oil demand by 2025, according to Fernando who also noted that the country currently spends a staggering US$ 57 million on edible oil imports. Sri Lanka consumes 220,000 metric tonnes of palm oil per annum of which only 12 percent is produced locally on a land area of 12,000 hectares, according to the POIA. “If the ban is lifted, we could start importing seeds, but it will take another year to ...

Source: UkrAgroConsult