Malaysian Indus worried by low palm oil demand

Malaysian industry watchdog Roundtable on Sustainable Palm Oil (RSPO) has set stringent criteria for plantations to be certified as producing sustainably. Agencies accredited by the RSPO are required to do a detailed plantation audit to prove that the estate concerned has met all needed social, environmental and legal conditions before certificates of approval are issued. Local planters are of two minds regarding the certification and its criteria, as getting it would entail additional expense while demand for RSPO certified palm oil isn’t good. Issues relating to pricing and demand for sustainable palm oil have come up at a time when there is a rising interest among producers for RSPO certification. “The issue of sustainability was raised in the first place by people in Europe and therefore they should be prepared to pay a slight premium for the palm oil because traceability doesn’t come cheap,” an executive of the Malaysian Palm Oil Association said. (April 8, 2009)