KUALA LUMPUR – The percentage of smallholders applying for the rubber production incentive (IPG) is expected to increase this year, thus boosting their income by 25% per month, according to the Plantation Industries and Commodities Ministry.
Minister Datuk Mohd Khairuddin Aman Razali said the incentive will be channelled directly to smallholders without a manual application process, after middlemen and rubber buyers were required to use the RRIMniaga app from January 1.
“With the help of the IPG, the estimated income of smallholders is projected to increase by 25%, from RM933 to RM1,167, a month.
“This is based on the average farm ownership of 2ha, and the farm price of rubber cup lump of RM2 per kilogramme.”
He said last year, 30.16% of smallholders who have a rubber transaction authorisation permit had claimed the IPG.
The number of active farmers submitting claims accounts for 135,632 out of a total of 495,296 permit holders, involving rubber smallholdings spanning 294,095.79ha.
“The government has never stopped assisting smallholders, especially when rubber prices are low,” Khairuddin said.
The IPG programme and use of the RRIMniaga app are among initiatives taken by the ministry and Malaysian Rubber Board to help cushion the impact of falling prices and ensure continuous production of the commodity’s products, as well as stabilise smallholders’ income.
The RRIMniaga app was launched by the board early last year to facilitate rubber transactions, involving retailers, buyers and middlemen.
In Budget 2021, the IPG fund allocation was doubled to RM300 million from the previous year.
More than 450,000 rubber smallholders are still reeling from the challenging economic situation, made worse by the Covid-19 pandemic. – Bernama, January 31, 2021
