Myanmar to cultivate oil palm in southern division

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(Xinhua)
Updated: 2008-11-18 10:54

YANGON -- Myanmar strives to cultivate 500, 000 acres (202,500 hectares) of oil palm in the southern Tanintharyi division, the official newspaper New Light of Myanmar reported Tuesday.

In response to the government's call, a total of 35 private companies have been engaged in the crop cultivation there.

So far, 249,274 acres (over 100,000 hectares) have been put under the crop in the region, the report said.

Tanintharyi division, a prospective oil bowl of Myanmar, is suitable for cultivating oil palm due to its soil, aquatic and climatic conditions and if the undertaking is extended year after year, there will be sufficient supply of edible oil for domestic consumption, oil palm growers predicted.

Transport infrastructure is being reportedly built by the government to encourage farmers for the engagement.

Other local reports disclosed that some companies from Malaysia and Thailand are seeking investment in oil palm cultivation in the division.

Myanmar has been placing emphasis on growing edible oil crops, outlining three major items of crops -- groundnut, sesame and sunflower -- to be grown in the three divisions of Sagaing, Mandalay and Magway.

An earlier official report revealed that Myanmar will start a 14-million-dollar three-year oil crop development project soon with a loan assistance provided by the Organization of Petroleum Exporting Countries (OPEC) to boost oil crop production.

The project, which also involves the Food and Agriculture Organization (FAO), will help reduce Myanmar's reliance on imported oil products.

Magway division was once an oil pot when the country has a few millions of population. However, as the population increased, palm oil has to be imported from abroad.

Official statistics show that with its annual per capital edible oil consumption standing at 10 kilograms, Myanmar needs over 570,000 tons of edible oil annually for its current 57.37- million population.

The figures also indicate that Myanmar imported $192.3 million vegetable oil and other hydrogenated oil in the fiscal year of 2007-08 which ended in March, up from $86.9 million in the previous year, and $111.56 million in the first quarter of 2008-09.