Surprise Inspections to Ensure Accuracy of Weighing Scales for Oil Palm Buyers
The Malaysian Palm Oil Board (MPOB) enforcement officers will conduct surprise inspections on oil palm buyers starting in early 2025 to ensure the accuracy of weighing scales to protect the interests of smallholders.
Efforts to Address Complaints from Smallholders
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said this is also in line with efforts to address issues related to complaints from smallholders regarding the manipulation of weighing scales.
Transparency and Receipt Requirements
He said each weighing scale must be transparent and accompanied by a complete receipt with actual information on the total weight, tonnage, and oil extraction rate (OER), as determined by the Ministry of Plantation and Commodities (KPK).
New Regulations for Oil Palm Buyers
“Starting in 2025, I have told MPOB that we will require oil palm buyers or dealers to correct their scales. There should be no more complaints from smallholders that the scales are inaccurate.
“I have received a lot of feedback from smallholders complaining about the (palm fruit) weighing issue. The licences issued to dealers are to facilitate the industry and must be complied with. If the procedure is not complied with, their licences will not be renewed,“ he said.
Fraudulent Activities to be Avoided
Commenting further, Johari said that in line with the new regulations, dealers who buy palm oil must ensure that the weighing equipment used is accurate, thus avoiding the risk of fraudulent activities.
Smallholders to Receive Receipts
“You have to provide (the receipt) to the smallholders to keep. I have received a lot of feedback from them complaining that dealers do not weigh, weigh inaccurately and so on,“ he said.
Focusing on Sustainability and Production Yield
Regarding the performance of Malaysia’s palm oil commodity, Johari urged the focus on sustainability while improving production yield.
As the second-largest exporter of palm oil, he said Malaysia needs to strive to remain competitive by increasing production.
“Whether it is palm oil, rubber, soybean, sunflower, wheat, or cocoa, (they are) governed by supply and demand dynamics.
“When supply exceeds demand, prices will fall, and demand exceeding supply (will cause) prices to rise,“ he said.
Impact of US President-elect’s Policies on Palm Oil Sector
Responding to the impact of the United States (US) President-elect Donald Trump 2.0’s policies or position on the palm oil sector, he said the ministry would first examine the official action plan the US leader would implement after his inauguration next month.
Conclusion
The Malaysian government’s efforts to ensure the accuracy of weighing scales for oil palm buyers will help to protect the interests of smallholders and promote sustainability in the palm oil industry.
FAQs
Q: Why are surprise inspections being conducted on oil palm buyers?
A: Surprise inspections are being conducted to ensure the accuracy of weighing scales to protect the interests of smallholders.
Q: What information must be included in the receipt given to smallholders?
A: The receipt must include actual information on the total weight, tonnage, and oil extraction rate (OER).
Q: What will happen if oil palm buyers or dealers fail to comply with the new regulations?
A: If the procedure is not complied with, their licences will not be renewed.