Growers of palm-oil seedlings yesterday warned they would suffer a loss of more than Bt400 million if the government delayed a project promoting palm oil as a constituent in alternative fuel.

The Energy Ministry plans to increase the country's production of alternative fuels to up to 17 million litres a day.

Naret Nophasi, chairman of the Palm-Oil Seedling Club, yesterday met Energy Minister Piyasvasti Amranand, to urge him to resolve the problem of a delay to a project promoting palm oil plantations.

The club has also lobbied the Agriculture and Cooperatives Ministry.

"The delay has resulted in a lack of sales of palm oil seedlings," said Naret.

"If the seedlings can't be planted within May, their quality will fall until they are unable to be planted."

The damage may cost Bt400 million to Bt500 million, he warned.

However, Piyasvasti said the ministry had revised its policy by setting a target of alternative-fuel consumption of 17 million litres a day by 2011.

This year the ministry will have a variety of promotions encouraging consumption of alternative fuels, including natural gas, gasohol and biodiesel.

"The ministry will use competition rather than compulsory measures as a mechanism to promote alternative-fuel consumption," said Piyasavati.

The ministry has targeted daily production of 4 million litres of biodiesel by 2011.

Meanwhile, plantation farmers said if the government wanted them to grow more palm-oil trees, it should encourage them with such support as special loans with low interest for three years and a guarantee to maintain prices at a minimum of Bt3.50 a kilogram.

Naret said he had confirmed there would be two new biodiesel plants with a production capacity of 600,000 litres a day. These new plants would be able to use a larger amount of palm oil produced as a result of the promotion project.

Energy Reporters

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