KUALA LUMPUR, Nov 27 — The Plantation and Commodities Ministry (KPK) via the Malaysian Rubber Board (MRB) will continue to strive to increase the income of rubber smallholders by implementing various incentives.
Deputy Minister of Plantation and Commodities Siti Aminah Aching said among the incentives are the Rubber Production Incentive (IPG) and improvement to the Latex Production Incentive (IPL) pilot project programme.
“The government in tabling the Budget 2024 has agreed to raise the activation pricing level for IPG from RM2.70 to RM3.00 per kg with an allocation of RM400 million.
“As of October 2023, IPG payout of totalling RM481.24 million has benefitted 219,419 smallholders,” she said during the question-and-answer session at the Dewan Negara today.
She was responding to Senator Datuk Dr Nuing Jeluing who requested the ministry to state the effective measures undertaken to assist smallholders in the rubber and cocoa industries in view of the softer prices of the commodities.
From Oct 23, 2023, MRB has expanded the implementation of the latex programme nationwide, she said, and hoped that the new IPL pilot project could attract more participation from smallholders.
“This effort will involve direct sales to the factory to reduce transport costs and smallholders will get more competitive prices. This pilot project will start with smallholder clusters in Perak, Kedah and Sabah,” she said.
At the international level, she said the government will also collaborate with major rubber-producing countries under the framework of the International Tripartite Rubber Council (ITRC) and The Association of Natural Rubber Producing Countries (ANRPC) to stabilise rubber prices through supply management measures and increasing the use of natural rubber.
For the cocoa sector, Siti Aminah said the ministry through the Malaysian Cocoa Board will continue to assist smallholders by undertaking measures such as the implementation of the Cocoa Plantation Rehabilitation programme from 2024 to 2025 with an allocation of RM9.5 million in Peninsular Malaysia, Sabah and Sarawak.
This programme is able to provide the agricultural input needed to increase cocoa productivity.
She pointed that the ministry has also expanded cocoa plantation areas through the cocoa products production stimulus programme involving the scope of new integrated cocoa plantation packages with other crops that has been implemented this year, targeting 200 hectares with a cost of RM5.2 million nationwide.
According to Siti Aminah, the ministry has also set up a cooperative under the cocoa clusters chain programme initiative with prices offered by the Cocoa Cluster Cooperative in the three regions for regular and premium cocoa beans higher than the market.
— Bernama
