Palm oil industry association urges lifting of palm cultivation ban

Chairman of the Palm Oil Industry Association of Sri Lanka (POIA) Dr. Rohan Fernando highlighted that it is the high time for lifting the 2021 ban on oil palm cultivation, since the Association widely regards the ban as an unscientific, ad hoc policy decision.Sri Lanka travel guide

Addressing the 6th Annual General Meeting of the POIA in Colombo on Monday (25), he added that Sri Lanka’s continuing ban on oil palm cultivation, imposed in 2021, remains one of the most debated agricultural policies in recent years. As the country struggles with rising living costs, foreign exchange shortages, and weak rural incomes, industry experts argue that lifting the ban has become not only logical but economically necessary.

Oil palm is the world’s most efficient edible oil crop, producing nearly four times the yield of coconut oil on the same land area. Yet Sri Lanka, uniquely among nations, prohibits its cultivation while simultaneously importing palm oil to meet domestic demand. This contradiction costs the country more than USD 200 million annually in edible oil imports, funds that could instead strengthen national reserves and support local livelihoods.

Despite the restrictions, the existing industry still supports more than 33,000 direct and indirect jobs and saves the country around USD 17 million a year. Experts emphasize that if cultivation had been allowed to expand as approved in 2014, Sri Lanka could have produced at least half of its edible oil requirement by 2025. Instead, dependency on imports continues to grow.

Globally, major producers and consumers are moving in the opposite direction. India, under its National Mission on Edible Oils, has committed to expanding oil palm cultivation to three million hectares to reduce import dependence. Malaysia and Indonesia are longstanding leaders in the sector, continuing to demonstrate how oil palm can drive rural development, poverty reduction, and export growth when supported by science-based policy, he added.

Environmental concerns, often cited to justify the ban, have been widely addressed through scientific studies. Research shows that oil palm can be cultivated sustainably in the Sri Lankan wet zone using proper management practices, without displacing forest land or harming biodiversity. Public awareness initiatives and international collaboration have further helped debunk misconceptions surrounding the crop.

Smallholders, particularly those affected by rubber price volatility and leaf diseases, continue to request permission to grow oil palm as a viable alternative. The crop’s higher returns, reduced labour requirement, and year-round income potential offer a path toward financial stability for rural families.

Lifting the ban, industry leaders argue, would not undermine coconut cultivation but strengthen national food security by diversifying oil production. As Sri Lanka seeks economic recovery, a rational, evidence-based approach to oil palm could unlock significant benefits, boosting rural livelihoods, saving valuable foreign exchange, and positioning the country for future agricultural competitiveness, Fernando added.Groceries

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