Cargill to suspend palm purchases from Malaysia's IOI Group

Tue Jul 19, 2016 7:07am EDT
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JAKARTA, July 19 (Reuters) - Major palm oil trader Cargill Ltd said it will suspend business with Malaysian palm oil producer IOI Corporation Bhd after the Roundtable on Sustainable Palm Oil (RSPO) suspended the Malaysian firm's certificate.

"IOI Group has yet to deliver a responsible sourcing policy or a detailed sustainability implementation plan to meet our requirements," Cargill said in a statement on Monday.

"Cargill will suspend business by not entering into any new purchase contracts until IOI Group can meet our requirements and comply with our sustainable palm oil policy."

In March, the RSPO, withdrew its "sustainabliity certification" from IOI due to a complaint alleging IOI illegally chopping down rainforest in Indonesia and planted palm oil on peatlands.

The suspension of IOI's green credentials has already caused Nestle, Unilever, Mars and Kellogg to drop IOI Group as a supplier.

IOI could not be reached for a comment outside business hours. (Reporting by Fransiska Nangoy, editing by William Hardy)