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KUALA LUMPUR: Malaysian palm oil planters condemned the US blockade on imports of FGV Holdings Bhd products, saying the move will affect more than 32,000 farmers.
The National Association of Small Producers of Malaysia called the ban a “reckless act” and said it will worsen the reputation of the product, as it also faces campaigns against palm oil in Europe.
The group said the accusation by US Customs and Border Protection that FGV was using forced labor is unfounded as most of the workers operate their own farms.
The US Customs order is the result of a year-long investigation that allegedly revealed labor abuse, deception, restriction of movement, isolation, intimidation, and physical and sexual violence, according to its statement.
The import ban is another blow to the palm oil industry, which is struggling with falling demand for cooking oil as the pandemic keeps restaurants closed.
In Malaysia, the world’s second-largest producer, plantations grapple with a worker shortage as the country has restricted travel, even turning to prisoners for help.
FGV, one of the world’s leading producers of edible oil, has been in talks with US authorities since August last year and has taken steps to respect labor standards, it said in a statement Thursday.
Another major producer, Sime Darby Plantation Bhd, said it is concerned that it will also be affected by the US action, as an NGO had filed a petition concerning forced and child labor on its plantations.
