JELEBU: The Primary Industries Ministry is looking into the fate of rubber tappers based on current rubber prices.
Its Minister, Teresa Kok (pix) said the ministry has presented this matter to the Cabinet for their review.
She said the Cabinet was briefed on Friday on the cost implication if the government was to raise the activation level of the Rubber Production Incentive from the current RM2.20 per kilogramme (kg).
“I have informed the members of the Cabinet during Friday night’s meeting on the situation faced by our rubber tappers. I have also outlined to them the costs for any government assistance given,” Kok said.
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Speaking to reporters after her visit to the Malaysian Rubber Board’s (LGM) rubber collection centre yesterday, the minister said she has drawn attention to the fact that the current incentive activation price had been set at RM2.20 per kg.
“If the price of rubber falls below RM2.20, the LGM will ‘top up’ the difference. Based on my calculations, if all rubber tappers claim for the difference when the price falls below RM2.20, the government must have an allocation of RM294 million to make up for the shortfall. This is the IPG system and this is the action we can take now,” she said.
Kok said if any rubber smallholders were not satisfied and considered the RM2.20 rate as low, the government had made some calculations to illustrate the cost implications.
“If we raise the IPG payment to RM2.50, the government needs to pay RM657 million to all these rubber tappers and this is a substantial amount.
“We should remember that rubber smallholders can plant other crops such as oil palm, and that other smallholders are also facing similarly difficult situations. Therefore, this is the cost (the government) needs to pay,” she said.
Kok said she had explained the situation to the Cabinet and the Ministry of Finance (MOF) stated that it would examine the situation.
“Due to the fact that the current economic situation is not as good, I believe that the MOF needs to make an in-depth study,” she added. — Bernama
