KUALA LUMPUR, Oct 23 – The government has implemented measures to support rubber smallholders income and increase production in order to safeguard their well-being due to the declining prices. Some of the measures included the Rubber Production Incentive (IPG) and Rubber New Planting and Replanting Programme (TBTSG).
The IPG scheme, which was implemented in September, aimed to incentivise rubber smallholders when the free-on board price of Standard Malaysian Rubber (SMR) 20 falls below RM5.10 per kg or cuplump price at farm-gate price level of RM2.00 per kg. He said this will ensure continous rubber production and supply of raw materials for downstream activities.
In addition, Finance Ministry in the 2015/2016 Economic Report released today said that when the price reaches RM8.25 per kg, the smallholders will contribute to the IPG fund, thus ensuring long-term sustainability to finance the IPG scheme. The report is issued in conjunction with the tabling of the 2016 Budget today by Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister.
The TBTSG programme has been implemented nationwide to ensure adequate production of rubber and rubber-based raw materials to meet domestic demand. As of August 2015, a total of RM140 million was disbursed for the programme. The government also continued to provide new planting and replanting incentives under the New Oil Palm Planting Scheme for Smallholders and Oil Palm Replanting Scheme for Smallholders.
As of August 2015, RM464.6 million was spent on developing 35,529 hectares under the New Oil Palm Planting Scheme for Smallholders while 36,007 hectares were rehabiliated under the Oil Palm Replanting Scheme for Smallholders. As for crude palm oil, the government waived the export duty from Sept 1, 2014 until Feb 28, 2015, in the hope to increase the export of CPO as well as reduce domestic stocks.
