Govt cannot replace Felcra crops on a whim, says minister

The government cannot replace the oil palm and rubber cultivated by Felcra settlers with cash crops on a whim, said Rural Development Minister Datuk Dr Abd Latiff Ahmad.

He said the government needed the consent of settlers to do this because they were bound by an agreement.

Nevertheless, he said the government was working to streamline and consolidate efforts to increase the income of Felcra settlers, 90 per cent of whom are in the B40 group and the rest in the M40 category.

"Felcra has a money-generating element, as it has seven factories, an annual income of RM500,000, is registering profits; we also want to concentrate on (the manufacturing of) chemical fertilisers", he told the Dewan Rakyat today.

Hence, he said Felcra could step up commercialisation to boost revenue for the benefit of its settlers.

He was replying to a question by Datuk Seri Salahuddin Ayub (PH-Pulai) on whether the government had plans to introduce other crops that have cash crop value to remain competitive internationally.

Meanwhile, to a supplementary question from Ahmad Johnie Zawawi (GPS-Igan), Abd Latiff said he would hold a meeting with the Ministry of Finance tomorrow to discuss issues concerning Felcra such as dividends and land development debt write-off.

-- BERNAMA