Reconsider new minimum lorry tonnage rule, FGV told

PAS has urged Felda Global Ventures (FGV) to reconsider its new rule requiring all lorries that deliver fresh fruit bunches (FFB) from oil palm trees to its processing plants, to have a minimum capacity of five tonnes.

"We urge FGV to look into the new rule which restricts the entry of lorries for the purpose of delivering FFBs for external suppliers," PAS Felda Affairs chairperson Naraza Muda said in a statement today.

FGV's purchasing department had, in letters recently sent to its external supplier licence holders, said that it has decided to accept deliveries only from lorries with the tonnage of five tonnes or more, beginning next month.

The letter further stated that Felda Palm Industries Sdn Bhd will reject any FFV shipment that did not fulfil the stated requirement.

"This move will not only hurt plantation owners, but also the children of Felda settlers, many of whom own and drive small lorries with tonnage ranging between one and three tonnes," said Naraza.

Many children of Felda settlers earn their livelihoods delivering FFBs from small scale external palm oil farmers to Felda processing plants, he added.

PAS argued that the new rule would only profit external supplier licence holders that have their own weighing equipment, as they buy the FFBs at a cheaper rate from palm oil farmers.

Naraza argued that the licence holders will now no longer hire the smaller lorries to deliver the FFBs to the FGV plants, which will cut off the income of lorry owners and drivers.

PAS questioned FGV's new rule, arguing that it is like cutting off its own supply of FFBs as the new rule may lead to suppliers sending their loads to private processing plants.

This argued Naraza, may cause Felda factories to face reduced profits and even make losses in some plants, which are already not operating at full capacity for lack of FFBs to process.

Malaysiakini has contacted FGV for comment and is waiting for a reply.- Mkini