Oudomxay curbs foreign banana concessions
Oudomxay curbs foreign banana concessions
Chinese companies need more land for banana plantations in Oudomxay province but authorities have so far refused to issue more concessions due to a lack of government benefits and concerns about the environment.
There are currently seven or eight Chinese companies in the province investing in banana crops for export, a Planning and Investment Department official named Mr Bounsong Souksun told Vientiane Times yesterday.
Under the venture, the companies pay farmers between 9-12 million kip per hectare for five year land concessions, while the government collects only 70,000 kip for banana shipment documents when the companies export the crop to China, he said.
Meanwhile the water level of several streams has receded more than normal as banana plantations expand, Mr Bounsong added.
Most of the crops were planted in Baeng and Houn districts, where cultivation began in 2008-2009 and the contracts conclude in 2014-2015.
Oudomxay authorities have decided to call a halt to the expansion of banana crops after the areas which were planted out suffered from harmful environmental impacts, while fertilisers and other chemicals were detrimental to people's health.
Some people living very close to banana farms became sick from the heavy use of herbicides, pesticides and chemical fertilisers, he said.
About 3,000-4,000 hectares of bananas were planted in the province and the growers were able to export thousands of tonnes each year, Mr Bounsong said.
Chinese companies are also investing in this crop in Bokeo and Luang Namtha provinces, where provincial authorities have also placed curbs on expansion due to similar environmental concerns.
However, Oudomxay provincial authorities may consider investment by new companies in banana plantations if benefits flow to three sides, those being the companies, local people and the government, Mr Bounsong said.
Various northern provinces have agreed to allow Chinese companies to invest in various crops for sale to China, including cassava, watermelons, pumpkins, beans and rice.
China offers a large market for the northern provinces and its influence is growing, with China now officially the biggest investor in Laos.
Some Chinese companies have not registered their investments with the Lao government or the provincial authorities.
Others have borrowed documentation from Lao businesspeople to use in the investment process rather than registering themselves as foreign businesses.
vientiane times
