29.09.2021 (themalaysianreserve.com) - FGV Holdings Bhd stated that it has no plan of setting up an oil palm processing unit in India but did not rule out the possibility that its local partner there may do so.
In a reply to The Malaysian Reserve (TMR), FGV debunked a recent news report in India that the group is proposing its processing facility in the state of Telangana in south India.
According to FGV, the article is inaccurate as there is no decision on establishing an oil palm processing unit in the country through FGVPU India Pvt Ltd, a joint venture based in Hyderabad between FGV Trading Sdn bhd (FGVT) and Pre-Unique India Pvt Ltd.
“We wish to clarify that FGVPU India Pvt Ltd has no plans of setting up an oil palm processing unit in Sircilla as reported in the news. However, our partner Pre-Unique may have a plan to set up an oil palm processing unit in Sircilla,” the company noted in a reply.
Last week, The New Indian Express reported that FGV representatives had met Telangana officials to propose the setting up of an oil palm processing unit in Sircilla and other parts of the state.
The article noted that FGV had invited Telangana officials to visit Malaysia to study the prospects of oil palm, as New Delhi is seeking to encourage the cultivation of the edible oil plant locally.
FGV, which is currently controlled by the Federal Land Development Authority, currently operates in several countries including Indonesia, Thailand, Cambodia, Pakistan, Turkey, France, Spain and the US.
M R Chandran (picture), advisor to Malaysia Roundtable on Sustainable Palm Oil, stated that India has been eyeing Malaysian crude palm oil (CPO) for its refinery processing plant.
“India needs raw materials like our CPO to keep their refinery processing plant going. This will also give an opportunity for us to export our product overseas to get higher revenue and incomes for the country,” Chandran told TMR.
According to him, India is majoring in feedstock processing plants whereby the facilities there can switch from CPO to soy oil, rapeseed oil and multi feedstock products.
“It is probably the right approach for FGV (or others) if they are setting up a plant in India since they have not established any processing plant in the country which is the biggest consumer of palm oil,” stated Chandran.
He added that FGV has better research capabilities and can produce high quality and hybrid planting material such as seeds which are in demand in India.
“CPO needs regular rainfall in order to be productive and we can’t grow oil palm in India without irrigation. As you can see in Malaysia, FGV has irrigation skills to produce CPO which might help India,” he said.