19 September 2024 01:23 am Views - 90
By Nishel Fernando
The Planters’ Association of Ceylon (PA) stressed that the government should entrust the Regional Plantation Companies (RPCs) with the land-use policies in allowing the individual estates to diversify, in the face of climate change.
“We must advocate for flexible land-use policies that allow the RPCs to make the best decisions for their respective estates. Whether this means transitioning from tea or rubber to other more profitable crops or implementing eco-tourism and renewable energy projects, these decisions must be supported by government policy that enables the RPCs to invest confidently for the long term,” PA Outgoing Chairman Senaka Alawattegama said.
The newly elected PA Chairman Sunil Poholiyadde also emphasised that agribusiness cannot remain profitable without diversification, in the face of climate change.
“There are areas receiving 6,000 mm of rainfall, whereas oil palm requires only 3,000 mm. The return on investment with such high rainfall won’t be achieved. Some areas are better suited for rubber, while others could be utilised for different crops,” he said.
He also recalled that diversification was a primary consideration during the privatisation process. Hence, he viewed that the PA should uphold the spirit of privatisation, by exercising their rights and holding the authorities accountable for respecting the agreements made during that particular time.
He pointed out that the investors and shareholders would only make further investments if there’s only adequate returns.
“We can’t assure our industry and shareholders of adequate returns. There’s no free money coming in; investments will only flow if there is a promise of returns. It’s our duty as planters to ensure these returns, if we want to gain the confidence of investors and shareholders,” he added.
In this context, Alawattegama outlined that science-based policymaking and policy stability remain crucial.
“Looking ahead, we cannot overstate the importance of policy stability. The plantation industry operates on long investment cycles and consistent and rational policymaking is crucial for the industry’s survival and growth. We must call on the government to ensure that future policies are rooted in science and commercial realities, rather than short-term political gains,” he elaborated.