The Consumers’ Association of Penang (CAP) would like to draw attention to the fact that the current chemical fertiliser import bill amounts to RM5 billion for the oil palm industry alone. The bill was estimated ‘to increase two fold due to higher petroleum and other commodity prices’. This is a frightening scenario.

As stated by Plantation, Industries and Commodities Minister Peter Chin in the same report, there are viable ways to reduce this large import bill for chemical fertilisers by the use of organic fertilisers and bio-fertilisers, including empty food bunches (EFB) and palm oil mill effluent (Pome) that are by-products of the palm oil industry. A large part of the savings can then be used to help the poor in Malaysia during this period of inflation and increases in prices of necessities worldwide.

The strategy of promoting organic fertilisers should not be limited to just oil palm crops but should be encouraged in the wider agricultural sector where on-farm crop residues, compost, etc. are effective organic fertilisers. This would limit the negative environmental impacts of chemical fertilisers, including their climate change impact (nitrogen fertilisers account for about 0.6-1.2% of global greenhouse gas emissions), reduce the fertiliser import bill and increase soil fertility, leading to higher productivity.

Moreover, the technology for converting palm oil mill effluent (Pome) into methane bio-gas to generate energy is fairly established in the country already. This has tremendous potential to provide an effective and efficient way to generate electricity which can be used on-site and if surplus exists, to be exported to the national grid.

Such use of bio-gas for energy generation would lessen the country’s dependence on fossil fuels and help reduce our emissions that lead to climate change. Bio-gas can be promoted in the wider agriculture sector as well, through the use of bio-gas digesters using on-farm ‘waste’ from both crops and animals.

CAP urges the agriculture and agro-based industry ministry to:

• make the production of food crops as part of a strategic policy for the nation
  
• encourage the use of organic and bio-fertilisers
  
• introduce an incentive scheme to encourage the use of organic fertilisers 
  
• support research and implementation on schemes on the use of agricultural and agro-based by-products 
  
• investigate the potential of using bio-gas digesters to generate on-farm electricity

CAP also urges the science, technology and innovation ministry to:

• encourage schools and universities to research and adapt ideas into technologies in the use of organic waste
  
• encourage NGOs and people organisations to assist householders and the local citizens with simple composting techniques in using organic waste
  
• set up working models in the re-cycling of organic waste for farms and plantations
  
• disseminate ideas to integrate good practices in industries to reduce and re-use waste
  
• institute tax incentives for farms and plantations to re-use the organic by-products

CAP urges the natural resources and the environment ministry to:

• institute public education on the harmful effects of waste on natural resources such as the air, and the water waysinitiate community projects to reduce and reuse organic waste
  
• implement projects to restore the once pristine water ways, air quality and environment and to prevent them from harmful contaminations

CAP urges the industry and commodities ministry to:

• institute ranking of industries according to environmental friendliness
  
• introduce tax incentives in the re-use of wastes and local materials in industries
  
• introduce incentives for oil palm plantations to use EFB and Pome for organic fertiliser and bio-gas generation

CAP urges the energy, water and communications ministry to

• further facilitate and promote the development of renewable energy sources such as bio-gas and
  
• increase targets for renewable energy generation under national development plans

With the concerted efforts carried out by the various agencies, without doubt a large part of the savings can then be used to help the poor in Malaysia during this period of inflation.