The National Oil Palm Policy Regional Consultation held in Kimbe recently was fruitful as it gauged views from oil palm growers to formulate a regulatory framework to benefit growers and the milling companies.
The first of three regional consultations started on Friday 25th August, 2023 at the Liamo Reef Resort in Kimbe, West New Britain Province. This week consultations continue to be held in Lae today (Monday 28th August) for the Momase region, and on Thursday 28th August will be a session for the Southern region in Port Moresby.
The Department of Agriculture and Oil Palm Industries Corporation were directed as a matter of urgency by the Prime Minister and the Minister for Agriculture to review the current Oil Palm Industry Corporation Act 1992.
The main objective of the legislative review exercise is to repeal the current OPIC Act 1992 and replace it with the Oil Palm Industry Authority Act to transform the OPIC into an Authority to better regulate the Oil Palm Industry.
A Review Team was established to undertake the review and provide options to the Government on Policy and Legislative Reforms in the oil palm sector.
The introduction of a policy or a regulatory framework is important as it allows for the Government to regulate to ensure standards and enforce compliance.
It also allows for a level playing field for all industry participants.
The Policy therefore provides the framework for Government intervention to ensure the growth of the oil palm industry in PNG.
Currently, there are no standards or a clear framework that provides the basis for the government to administer and regulate the oil palm industry.
This has resulted in the lack of Government focus coordination to address various issues in the oil palm industry.
The Review Team, while in Kimbe presented an overview of the Draft Policy on Oil Palm.
The oil palm industry has been operating in PNG without any regulation by the Government.
The Review Team clarified that the current Oil Palm Industry Corporation Act 1992 does not empower OPIC to regulate the oil palm industry except to provide extension services to smallholders.
They also clarified that the development and growth of the oil palm sector in PNG have created the need for the Government to establish a regulatory framework to regulate the sector; therefore; requires a legislative reform of the oil palm sector through a review of the current Oil Palm Industry Corporation Act 1992.
This is to ensure that the sector is developed in a sustainable manner consistent with the National Government’s aspirations in the national development plans and strategies.
The establishment of a regulatory framework will also require the establishment of an institution to undertake regulatory functions under relevant laws.Â