The supply and quality of FFB sourced mainly from licensed dealers has been poor, the report had said.

Responding to the report, Deputy Minister of Plantation Industries and Commodities, Senator Datuk G. Palanivel said a delay in the transportation of the FFB could be one reason.

The FFB crop once harvested, must reach the mills, at best, within 24 hours to ensure it retains its measurement of freshness.

“The problem could be due to the delay in transportation from plantation to processing centres by oil palm dealers of unorganised smallholders,” Palanivel said during a media briefing on the Corporate Social Responsibility (CSR) programmes adopted by plantation companies.

It was also mentioned in the report by a local daily that millers in other categories like the government-backed agencies such as Felda, Felcra and Risda as well as the Malaysian Palm Oil Association (MPOA) members said to be “the big boys” have better control over the supply chain, derived mainly from their own plantations.

Most independent millers, do not own estates and get supply from unscrupulous dealers who take advantage of the situation by selling FFB which are of lower quality, the report said.

In Malaysia, the quality of palm oil have to comply with standards set by the Palm Oil Refiners Association of Malaysia (PORAM) where the maximum percentage of free fatty acid is five per cent, maximum moisture and impurities is 0.25 per cent and minimum degree of breacheable index (Dobi) value is 2.31. — BERNAMA