Felda settlers to suffer from US ban on FGV

 

Felda settlers will suffer from the US decision to ban palm oil imports from FGV Holdings Berhad.

The National Association of Smallholders Malaysia (Nash) said a substantial number of Felda settlers rely on FGV to sell their produce.

"The majority of Felda settlers sell their fresh fruit bunches (FFB) to FGV factories as one of their commitment and support for FGV," said Nash deputy president Adzmi Hassan in a statement today.

He said there are more than 100,000 Felda settlers, 32,000 of which are Nash members, who will see their income affected.

The US Customs and Border Protection (CBP) on Sept 30 announced a ban on the import of palm oil from FGV over allegations of forced labour.

It said the ban is the result of a year-long investigation that revealed forced labour indicators including abuse of the vulnerable, deception, physical and sexual violence, intimidation and threats, retention of identity documents, among others.

However, Adzmi dismissed the allegations as untrue.

"The issues raised do not occur as most settlers operate their own farms," he said, adding that they also have a Malaysian Sustainable Palm Oil (MSPO) certification.

"FGV is subject to MSPO certification implemented by the Malaysian government, where the implementation of MSPO includes assurance of environmental, economic and social aspects that are closely related to employee welfare and labour utilisation.

"Therefore, FGV must comply and follow the instructions issued by the government," he added.

Adzmi said the US needs to show strong evidence before taking any drastic action.

"We fear this action will further tarnish Malaysia's reputation especially in the current situation where Malaysia is still trying to counter the anti-palm oil campaign implemented by the European Union.

"Nash always ensures the welfare of more than 650,000 oil palm smallholders, including Felda settlers.

"With an average of five people per household, this action will definitely affect more than three million people who depend on this commodity crop in the future," he added. - Mkini