MP calls on govt to consider fixing floor price for scrap rubber at RM3.50 per kg

KUALA LUMPUR: Baling member of parliament (MP) Datuk Seri Abdul Azeez Abdul Rahim has called on the government to consider fixing the floor price of scrap rubber at RM3.50 per kilogramme (kg) as a long term measure to increase the income of smallholders in the commodity sector.

The move can increase the average income of rubber smallholders to RM2,625 a month compared to less than RM1,500 a month at present, he said.

"I suggested that the buffer stock policy be used to fix the floor price of commodities without resulting in a big financial impact to the country.

"This method has been applied in China to control padi farmers' income and the Australian government has used it to control the price of cotton," he told Parliament during the Supply Bill 2022 debate today.

The Baling MP said by increasing the floor price, the estimated allocation for the rubber production incentive (IPG) will amount to about RM120 million a year.

"The allocation can be generated through the implementation of the windfall tax on major companies that are directly involved in the rubber industry.

"The tax collection can be put in a fund for smallholders and the government should formulate special laws for this fund so that it will not be used for other purposes," he added.

-- BERNAMA