Incentives for rubber sector to benefit 300,000 smallholders

Some 300,000 rubber smallholders nationwide most of whom are from the rural areas will benefit from the government's decision to raise the rubber production incentive (IPG) activation price.

Minister of Plantation, Industries and Commodities, Datuk Amar Douglas Uggah Embas said this would enable rubber smallholders with an average land holding of two hectares and cuplumps productivity of 3,000 kilogramme (kg) per hectare per year, to earn an income of RM1,125 with an additional RM125 a month when rubber price SMR 20 FOB (Free on Board) slips below RM5.50 per kg.

Prime Minister and Minister of Finance, Datuk Seri Najib Tun Razak in tabling Budget 2016 in the Dewan Rakyat yesterday announced that the IPG activation price of SMR 20 FOB is raised from RM4.60 to RM5.50 per kg. For scrap rubber or cuplumps, the price is raised from RM1.75 to RM2.20 per kg at farm price.

At the same time, Uggah in a statement also welcomed the attention given in the budget for the Sarawak community, as 60 per cent of its population were from the rural areas.

"The RM70 million interest free loans for the purpose of building longhouses is very much appreciated," he said.

Additionally, the RM115 million allocation for the Special Programme for the Bumiputeras in Sabah and Sarawak, such as for native customary rights, he said, would continue to assist the community.