KUCHING (Jan 16): Sago and Nipah Development Board (SDNB) will be established to assist the government in its planning to ensure the future viability and sustainability of the sago and nipah industries in Sarawak, said Dato Sri Dr Stephen Rundi Utom.

“This will lead to the increase in productivity, adoption of new technologies and promote orderly development of upstream and downstream sectors, particularly in executing and promoting of these commodities and its related activities for the smallholders in Sarawak,” said the Modernisation of Agriculture and Regional Development Minister in his second reading of the Sago and Nipah Development Board Bill, 2022 at the State Legislative Assembly today.

He also said the SDNB, to be under the purview of his ministry, has the primary objective to promote, facilitate and develop the sago and nipah industries as a new frontier to maximise economic returns and increase smallholders’ income.

He added it will also formulate strategic objectives, policies and priorities for the orderly development and administration of both sago and nipah in Sarawak.

“When passed, its areas of jurisdiction cover all activities in the upstream and downstream of the sago industry and nipah industry including the planting of sago and nipah palms, the processing and utilisation of sago and nipah, the production of sago starch and nipah sap and the  manufacturing of sago products and nipah products and its derivatives, and any services related thereto.

“All these activities will be regulated by the implementation of registration and licensing scheme and enforcement activities,” he said.

On the sago industry, he said the cultivation of sago in Sarawak can be traced back to early 1880s and was among the key agriculture trading commodities of Sarawak since then.

He revealed that the state’s sago industry is presently dominated by the smallholder sector which accounted for 92 per cent of the total estimated planted area of ​​32,329 hectares.  Currently, there are eight sago processing factories in operation with an average production of 1 to 1.5 metric ton of sago starch per hour.

According to Rundi, Sarawak is the world largest exporter of sago flour and the state in the year 2020 exported 37,884 metric tonnes of sago starch valued at RM78.29 million, mainly to Peninsular Malaysia and Japan with 51.27 per cent and 35.47 per cent of the total export volume respectively.

“The main sago areas are in Mukah, Betong and Sarikei divisions.  Sago smallholders still rely on traditional approach of cultivation, and this has contributed to the inconsistent of sago logs production as raw materials for the downstream activities for the sago industry in the Sarawak,” he said.

With Sarawak already establishing its global market position for sago starch and to remain competitive, he said the government must ensure and sustain its comparative advantage over this market segment and price dominance.

“In this context, the state government is promoting and expanding the development of the crop on a commercial basis due to its potential as a food source through the establishment of Sago and Nipah Development Board (SNDB).

“The potential of sago industry has not been exploited as an economic and commercial viability mainly due to its long gestation period.  However, based on the study by the Food and Agriculture Organisation (FAO), sago has its potentials for food production and food security to meet the demand of growing population in the future,” he said.

He added sago is not only a food crop, but also has diversified uses n the production of adhesive materials, while sago cellulosic biomass could be turned into bio-degradable packaging, animal feeds, bio-fertiliser, and biofuels.

On nipah industry, he said nipah palm covers an area of ​​about 111,351 hectares in Sarawak, as a natural component of  mangrove forests and covers extensive areas along the coast, estuaries, and riparian zones of rivers.

“Like sago, nipah palm is a perennial crop.  Nipah palm can be tapped four years after planting, and keeps yielding for more than 50 years, regenerating from underground stems and rootstock and does not require replanting activities.

“Our local farmers have been using nipah palm from the natural nipah forests to produce nipah palm sugar or ‘gula apong’.  ‘Gula apong’ is considered as a healthy organic substitute for synthetic sugar…It is also used as sweetener and ingredient in foods and confectionery products like pastries and local delicacies,” he said.

In this regard, he said the government is promoting to increase the production, consumption, and marketing of nipah palm sugar both for local and overseas markets as initiatives to create economic activities for local farmers.

At present, there is a Kuching-based company exporting nipah palm sugar products to Hong Kong, South Korea, New Zealand, and Canada. The products include natural sugar, sugar apong spread, granules and syrup.

“In 2021, Sarawak exported ‘gula apong’ products valued at RM1.93 million while RM3.38 million was from local sales,” he said.

He also revealed recent studies by Centre for international Forestry Research (CIFOR) have shown that nipah palm has a significant potential for the production of biofuel in the form of bio-ethanol.

“Nipah palm has the potential to produce twice the amount of ethanol per hectare as compared to sugar cane and four times that of corn.

“In this context, one of the roles and functions of SNDB is to explore the potential of nipah palm for ecosystem restoration and climate change mitigation, sustainable rural livelihoods, and renewable energy, and seize this new growth opportunities in this sector,” he said.

Dr Rundi also said the SDNB could also help Sarawak to achieve Sustainable Development Goal (SDG) 1 that focuses on food security and SDG14 that leads to conserving and sustainable use of  natural resources for an ultimate sustainable development of the state’s sago and nipah industries.