By Jithendra Antonio
Watawala Plantaitons PLC Chairman, G. Sathasivam is of the view that future Palm Oil prices would rise as Palm Oil will have higher demand as an input for bio-diesel production.
“Spurred on by the world’s intensified search for alternate sources of energy, the Malaysian government for instance has now renewed focus on developing its palm oil industry for the production of bio-diesel,” Sathasivam outlines in his latest annual financial review adding that building of new bio diesel plants is being encouraged in response to demand for bio diesel from European countries.
While the contributions from the oil palm business of Watawala Plantations Group has been commendable during the year, Sathasivam anticipates that strong demand for bio diesel is also expected from countries such as South Korea, India, Colombia and Turkey.
“As palm oil has the lowest cost of production amongst edible oils, it seems likely to
make up a significant portion of that market,” he says adding that Oil palm planted on anthropogenic grassland could supply this requirement in 2050, thus addressing some of the environmental concerns related to the destruction of forest land.
He further notes that it is encouraging the Ministry of Plantation Industries has proposed to expand Sri Lanka’s Oil Palm cultivated land extent from the current 5,000 hectares to 25,000 hectares. “A public-private partnership would be a vital element to ensure the success of this programme” Sathasivam notes in his review.
He further goes in to explain that any wage revisions during next year, would need to be linked to productivity and continuous unproductive wage revision could be detrimental to the Plantation Industry as a whole. “There is a serious need for all stakeholders to take part in this issue than isolating the Plantation Companies,’ Sathasivam stresses in his review.
source - www.dailymirror.lk
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