Palm oil industry is always a controversial topic, but its popularity among other issues escalates recently. Accordingly, the reason is due to the emergence of possible Indonesia-EU trade war.
People, in addition, have been discussing this issue through a myriad of platforms. Beginning from people in western countries to people living in palm-oil-producer countries, opinions vary.
Most of the people in the west are condemning this industry due to numerous reasons. Additionally, the reasons are relevant to environmental issues. Besides these western people, many people from the producer countries also back this argument up.
In contrast, there are also clusters of people who support the industry. This is so for there are many people who make a living through palm oil industry. If the world eradicates or further jeopardizes this industry, there will be a huge uproar for masses will be jobless.
For both parties have robust standpoints in this matter, Online Trading Asia team will summarize some of them so that audiences are possible to discuss and opine on it. Thus, we provide an overview about the palm oil industry.
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Pros
In 2016, about 86% of the world’s palm oil was from Indonesia and Malaysia. Also, 4.5 million lives make a living from the industry and approximately 25 millions more in Indonesia alone indirectly depend on palm oil profits for their livelihoods.
Furthermore, palm oil is commonly used in numerous products that people consume, such as ice cream, cosmetics, and so on. The demand keeps rising. Moreover, palm oil is the most efficient vegetable oil crop to grow.
If, by any chance, the world banned palm oil, there will people millions of people who lost their livings in a blink of an eye. Not to mention that the cost to produce various products would surely skyrocket for companies would have to find alternatives and they can be more costly.
Cons
The industry requires a large terrain, thus it hugely contributes to tropical rainforest deforestation. Deforestation is surely a grave problem to the Earth and palm oil industry is promoting it.
Due to the deforestation, palm oil industry also robs the home of orangutans in the land of Sumatra and Borneo. With the habitat being destroyed, it is no wonder that orangutans are about to go into extinction. Also, there are cases about palm oil farmers kill or terrorize orangutans in the process.
In clearing the forest, a man-made wildfire usually consumes the target forest. In so doing, the large fire will produce lots of unhealthy CO2 emissions. Although this method possesses numerous dangers, many companies still utilize it due to effectiveness and efficiency.
Resolution
Currently, there prevails no accurate and just resolution to the foregoing. In response to the harms, Indonesian government has promised not to clear another forest are for palm oil industry. Yet, in reality, this is nothing but a mere promise.
In settling the issue, both perspectives should be taken into account. In so doing, the government should really make rigid regulations to healthily control and monitor the industry.
Also, another important point in this issue is that overconsumption of palm oil products drives the demand high. Limiting its usage is the one to promote, not the banning itself.
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