KUALA LUMPUR, March 15 (Bernama) -- The European Commission (EC) on 13 March 2019 classified palm oil not a "green fuel" and claimed that cultivation of oil palm as the cause of deforestation. 

FELCRA Berhad ("FELCRA") is appalled by this propaganda which has a devastating impact to the 112,454 smallholders, whole lands are managed by us. 

The majority of our smallholders are dependent on palm oil as their main source of income. As a consequence of the prevailing low prices, our smallholders' income had reduced from an average of RM1,200 (USD300) per month in 2017 to an average of RM450 (USD112.50) per month since 2018. This new ban will have a direct impact to future demand as well as a profound impact on prices. 

As income reduced, our smallholders are not able to put enough food on the table, pay utility bills and send their children to school. 

The action by EC is clearly discriminatory as other vegetable oils, such as soy, are not singled-out under the latest ban imposed. We urge the EC to lift the palm oil biofuel ban which will greatly hurt our smallholders' livelihood and will eventually drive our smallholders back to poverty if persist. 

If EU fails to lift the ban immediately, we will put immense pressure on the Government of Malaysia to reciprocate a ban on the consumption of EU products and services nationwide in order to secure the livelihood of our smallholders. 

CORPORATE COMMUNICATIONS GROUP 
FELCRA Berhad 
14 March 2019

SOURCE: FELCRA Berhad 

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Encik Luqman 
Tel: ​03-4145 5445 / 018 356 6956

--BERNAMA