Why were warning letters issued to palm oil mills and estates?

Question

Accepted Answer

Warning Letters Issued to Spur MSPO Certification Compliance

Warning letters were issued to 100 palm oil mills on January 28, 2020, and subsequently to estate owners on February 12, 2020, who had not yet initiated the Malaysian Sustainable Palm Oil (MSPO) certification process. These measures were implemented to address the low rate of MSPO certification uptake among various industry players, particularly independent smallholders, and to encourage broader adherence to the mandatory certification scheme.
Addressing Low MSPO Certification Rates

The issuance of warning letters followed a period where the progress of MSPO certification had been deemed insufficient. As of December 31, 2019, only 1,753 oil palm estates, representing 71.1 per cent of the total and covering 2.97 million hectares, had achieved certification. Similarly, 340 palm oil mills, or 75.2 per cent, had obtained the certification by the same date. These figures indicated a need for more decisive action to meet the mandatory implementation deadline.
Focus on Smallholder Compliance

A significant concern highlighted was the low rate of MSPO certification among smallholders, especially independent ones. By May 31, 2020, only 24.82 per cent of independent smallholders had obtained the certification. In response to this, the Malaysian Palm Oil Board (MPOB) extended the mandatory enforcement period for smallholders by six months, pushing the commencement of enforcement to June 30, 2020. This extension aimed to provide additional time for these stakeholders to comply.
Enforcement Actions for Non-Compliance

The MPOB had established a phased approach to enforcement for those failing to comply with the mandatory MSPO certification. Industry players, including operators of estates and palm oil mills, who had not begun the certification process by January 1, 2021, would face escalating penalties. These actions were stipulated to begin with a compound, followed by potential licence suspension or termination, underscoring the seriousness of the mandatory requirement.

Reading history

Hide →

This history is cleared when the page is closed.

Why were warning letters issued to palm oil mills and estates?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends