KOTA KINABALU: A hike in raw rubber prices has led to a windfall for smallholders in the state, some of whom have seen their monthly income increasing by as much as RM7,000.
State Minister of Agriculture and Food Industry Datuk Seri Yahya Hussin said he was happy for the rubber smallholders.
Yahya said the international price of Standard Malaysian Rubber 20 (SMR 20) had doubled from its low of RM4.70 per kg in early last year to current prices of RM9.68.
He said the increase was due to a shortage in supply in the world market in the wake of flooding in southern Thailand.
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Yahya said the smallholder rubber prices in Sabah had increased from a low of RM1.50 per kilogram for cuplumps at 50% dry rubber content to a high of RM3.75 per kilogramme.
“The increase has resulted in rubber smallholders earning between RM2,500 per month to RM7,000 per month.
Yahya said the government was always concerned about the welfare of the smallholders and that was the reason it has in place a social safety net policy for them called the Rubber Production Incentive (IPG).
The IPG is paid when the farm gate price falls below RM2.20 per kilogram for cuplumps (50% dry rubber content) or when the international SMR20 price is below RM5.50 per kilogram.
If the actual price of cuplumps is RM1.50 per kilogram, the government will top up the difference of 0.70 cents per kilogram.
He said the Federal government had paid more than RM22mil to smallholders in Sabah from September 2015 to October 2016 through the Sabah Rubber Industry Board under this programme.
He also thanked Prime Minister Datuk Seri Seri Mohd Najib Tun Abdul Razak for helping the state’s more than 13,000 smallholders during the difficult times they had faced over the past few years.
Yahya said the Prime Minister had also provided funds to rubber smallholders for replanting and new planting of rubber through the Sabah Rubber Industry Board totalling more than RM321mil between 2012 and last year involving 26,518ha.
A total of 8,540 smallholders were assisted under the National Key Economic Area programme.
For 2017, the Federal government has allocated more than RM65mil to further replant and plant 3,856ha, and maintain planted areas through the board.
Some 1,285 additional smallholders will be assisted in 2017.
