Papua New Guinea’s Minister for Trade and Industry, Richard Maru, has announced a formal inquiry into the country’s oil palm industry as part of the government’s broader reform agenda. The probe, launched in early February 2025, seeks to address issues related to sustainability, fair trade practices, and economic benefits for local communities.
Speaking to PNGBusinessNews.com, Maru underscored the need for greater transparency and accountability in the sector, which is a significant contributor to PNG’s economy. “Oil palm has enormous potential, but we need to ensure that industry practices align with both economic and environmental sustainability,” he said.
The investigation follows concerns raised by smallholder farmers and advocacy groups regarding land acquisition practices, pricing disparities, and environmental degradation. The government aims to evaluate whether multinational corporations operating in PNG are adhering to fair trade principles and ensuring equitable revenue distribution.
The inquiry will involve consultations with key stakeholders, including oil palm producers, exporters, and environmental organizations. The findings will inform potential policy adjustments, such as stricter land-use regulations and improved price controls for local farmers.
Maru hinted at the possibility of introducing a national regulatory body to oversee the sector. “We cannot afford to have an industry that disproportionately benefits a few while marginalising local farmers,” he was quoted in the media as saying.
With PNG being one of the largest palm oil exporters in the Pacific, the outcome of this probe could have significant implications for both local producers and international buyers. The government has reassured stakeholders that reforms will be implemented in a manner that fosters growth while ensuring fair competition and sustainability.
PNGBusinessNews.com reported that the results of the inquiry will be released later this year, with recommendations expected to drive long-term improvements in the industry.
