Market

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Showing posts with label discrimination. Show all posts
Showing posts with label discrimination. Show all posts

Wednesday, August 10, 2011

WHY PALM OIL IS "UNJUSTIFIABLY" TARGETED? IT IS TIME FOR COUNTER ATTACK

Palm oil, the cheapest edible oil in the international market, has been giving other oils a run for their money and hence it is the focus of attack by its competitors, rightly or wrongly. No matter how hard countries like US, Canada and other industrialized countries try to compete with Palm oil with their own oils like Soy, Canola etc, it has been a losing battle as evidenced by the preference of food industries world over for palm oil because of its thermal stability and functional advantages besides the low price. Indonesia and Malaysia together account for more than 40 million tons of global production and both being forest rich countries, the campaign against them revolves around the prevalent production practices which have been termed "unsustainable" but with least conviction. The western inspired Round Table on Sustainable Palm Oil is to day in the forefront denigrating this oil, obviously to gain market advantage for their own oils. The latest attempts in Australia to even force Palm oil using food manufacturers to declare on the label whether the oil used is sustainable or not is a clear violation of WTO regulations which does not allow TBT for discriminating against any product in the world trade.

"Aimed at consumers, politicians and the food industry, the ongoing campaign in Australia to single out palm oil as a food ingredient, revolves around the Food Standards Amendment (Truth in Labelling Palm Oil) Bill 2010.If the Bill is passed, there will be new labelling standards for producers, manufacturers and distributors of foods containing palm oil. The proposed change in law is based on the argument that "palm oil production results in extensive deforestation". Said the explanatory memorandum to the Bill: "As the major producers are Malaysia and Indonesia, this has led to the removal of wildlife habitat and has placed many species, including the endangered orang utan, at risk." The purpose of the legislation, according to the memorandum, is "to ensure that consumers are provided with clear, accurate information about the inclusion of palm oil in foods, and to encourage the use of certified sustainable palm oil in order to promote the protection of wildlife habitat".

Watching the above "circus', one is reminded of similar campaign against Brazil which was accused of environmental crime for expanding its sugar cane cultivation as a part of a long term program to cut down consumption of fossil fuel vis ethanol production. Obviously such programs are likely to hurt the Corn industry which also produces ethanol and Fructose syrup, competing with Brazilian sugar cane industry. When Asian countries pioneered the Palm oil industry with the hard sweat of their people, there were organized attempts by the West to denigrate the oil as unhealthy with potential for causing Heart disease and other related dangers and it was a hard fought battle by the palm growing countries deploying western nutritionists to demolish the insinuations. Now that the oil has become the most sought after edible oil or biofuel, new road blocks are sought to be created by calling Palm oil production environmentally unsustainable! As sellers have no choice, the Palm oil producers have to listen to the grievances of the buyers, however "unsustainable" their stand many be! The critics of Palm oil do not seem to have any conscience while arguing out their case because of the impact of unjustified action on the economy of those countries which rely heavily on export of Palm oil. More than 2 million people find employment in Palm oil production, besides thousands of small growers with limited resources to dance to the tune of the Western countries, which seem to be shifting the "goal post" from time to time, the obvious purpose being finding one or the other fault with Palm oil. It is time that producers of Palm oil start a charm offensive to counteract the bad publicity with scientific evidence that Palm oil plantations are not that bad as being made out to be by the vested interests.

Tuesday, July 19, 2011

FOOD "APARTHEID" IN MAKING?-IT IS TIME FOR WTO TO INTERVENE

Palm oil, the mainstay in the economic strength of countries like Malaysia and Indonesia is about to get a body blow in Australia and New Zealand because of grossly discriminatory labeling regulation being proposed by these countries. It is beyond one's perception as to how a civilized country can harm the economic interests of a fellow country by restrictive trade practices not based on scientific facts. The only crime of Palm oil is that it is being produced in a more efficient manner and costs less in the global market compared to other competing oils like Soybean oil or Canola. The zealots of environmental salvation has zeroed in on Palm oil as they are of the view that large tracts of forests are denuded to establish giant Palm plantations in countries in the forefront of Palm oil production. How ever these protectionists are ignoring the fact that Palm oil trees, planted in denuded forests, also provide similar benefits of a green cover and a carbon sink! If such narrow considerations creep into sustainability assessment, practically no food crop can stand strict scrutiny and no one seems to have thought about the implications of such a policy world wide?

Almost immediately after the bill passed the Senate, international governments and food industry representatives criticised it, saying it was illegal and discriminatory. Dompok stated that the bill did not take into account that the palm oil sector has contributed substantially towards addressing rural poverty and generating employment in the agricultural sector.The Malaysian palm oil lobby had opposed the bill, with the Malaysian Palm Oil Council putting their case before a Senate committee public hearing in April. Y.B. Tan Sri Bernard Dompok, Malaysia's minister of plantation industries and commodities, said that labelling palm oil purely from the perspective of sustainable production was discriminatory. He also stated that in comparison, competing vegetable oils were not required to be labelled, which makes the bill discriminatory of only one type of oil.

Why is that some countries in the West try to put road blocks in the economic development of "not so well to do" countries in such a blatant way? Probably ugly protectionism may have some thing to do with such reprehensible policies under which domestic industry is "cocooned" to ward of any adverse influence through imports of low cost foods and ingredients from developing countries. The only way to counter such a strategy will be to declare many foods made in the developed countries unacceptable unless they modify their label declaration to suit the needs of the developing countries. If the world gets into such a "tit for tat" treatment mode, what will be the future of WTO which is supposed to remove all barriers for free and fair trade among the nations in a true spirit of a "global village" with no boundary restrictions? Nothing but utter chaos!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Monday, December 20, 2010

WHY THE PALM OIL IS DISCRIMINATED AGAINST? NO RHYME OR REASON!

For the last 5 decades systematic attempts were being made to target Palm oil and label it as unhealthy. Probably the fact that it is the most affordable edible oil in the world is working against this common man's oil and some of the Western countries with their large production base of Canola and Soybean Oil, have a vested interest in this diabolical plot as they find it difficult to face competition from oils coming from Asia like Palm oil and Coconut oil. Though both Palm oil and Coconut oil have been proved conclusively to be safe, the orchestrated charade against them continues unabated. It is unfortunate that a country like Australia with no stake in this controversy has got into the band wagon of Palm oil "haters".

"As per the prediction of a manager with one of the most popular food companies in Australia the food industry will gradually play a key role in phasing out palm oil just like the building industry phased out asbestos. Palm oil is frequently used in the production of snacks, frozen foods and bread spreads since it is a cheap alternative which is very high in saturated fat. It is also disguised as 'vegetable oil' by food companies on labels. Some prominent brands use this oil for their products like Nutella, Kraft peanut butter and chips by Smith's. This oil has recently become a controversial product which is being used in foods because of its high saturated fat content. The palm oil plantations also have several other harmful effects on the environment. The business manager of Dick Smith Foods, Paul Grundy said that his company is among those who have asked this ingredient to be removed from all the spreads after customers have expressed their concern about this ingredient. He said, "Asbestos was used in building materials 50 years ago and today it is not, because they [the manufacturers] recognized the hazards with it. The same happens in food products: ingredients change over time, based upon more a more enlightened view of the world."

It is the height of stupidity and sense of arrogance for a spokesperson of the Australian food industry to compare Palm oil with Asbestos which is banned because of its proven involvement in lung related ailments. What harm Palm oil has done to human beings for it to be compared with Asbestos? One has to only point out the enormous damage done by the Western originated "Hydrogenated Fats" which contained high levels Trans fats considered a major culprit in the rampaging incidences of heart disease being seen all over the world. What right do these antagonists of Palm oil have in condemning it with no scientific evidence? Another excuse to condemn Palm oil is that the producing countries in Asia are denuding the jungles for expanding its cultivation thus causing harm to the environment. Same applies to Brazil also which is cultivating sugar cane in thousands of acres of land after clearing Amazon forest and do the Western countries shun Sugar or Bio-ethanol exported by Brazil? Palm oil producers must counter such discriminatory practices by banning import of soy oil and Canola and products made there from originating in these countries as a "tit for tat" response to the irresponsible campaign against this "innocent" oil.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Monday, March 8, 2010

CARBON "LOAD"-NEW "MANTRA" IN UK


Whether it is a useful practice with any impact on the environment or a ploy to buy out time, the current thinking in the UK, Australia, Japan and other countries to introduce a provision under the labeling regulations to declare the "carbon load" of each processed food product, remains to be seen. The new policy is supposed to guide the consumer in the isles of supermarkets to products causing lowest pollution during its production and processing. If the consumer has very limited choice vis-à-vis "green" products, it is unlikely that the expected result is achieved.

"Supermarket food in the UK will be labeled to show its carbon footprint, country of origin and animal welfare standards as part of the government's new food strategy for the next 20 years, reports the Telegraph. The voluntary "green" food labels will show how much carbon was produced in the manufacture and transportation of food, according to the article. Companies such as Tesco, PepsiCo and other leading brands already display a "carbon reduction label" on certain products showing the amount of carbon dioxide produced in grams in growing the food, packaging and transportation, reports the Telegraph".

In the absence of reliable and independent verification system to ascertain the claims of carbon reduction by different manufacturers, it may degenerate into a "free for all" situation allowing all and sundry to declare that their products are "green", similar to the health claims made by some of the manufacturers without any scientific data. WTO should frown upon such practices to prevent undue discrimination against imported products which invariably will have more carbon load. Such a system may be difficult to be implemented because of deemed discrimination against small processors who have no means to comply with such compulsory regulation due to cost and logistical constraints and the big players with unlimited resources and muscle will elbow out smaller ones from the market on this score. Instead of resorting to such gimmicks, national governments must sensitize the growers, distributors and retailers regarding the urgency to reduce CO2 emission at their operational levels.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com