KUALA LUMPUR (July 26): The Plantation Industries and Commodities ministry is finalising the disbursement method for an estimated RM264 million in financial aid to 440,000 rubber smallholders nationwide to tide them over the upcoming monsoon season.
In a statement today, plantations minister Datuk Seri Mah Siew Keong said an announcement on the financial aid of RM200 a month between November 2017 and January 2018 will be made soon. It is part of the ministry's safety net programme via the Malaysian Rubber Board to protect the welfare of rubber smallholders during the rainy season, which will disrupt their rubber-tapping activities.
"During the monsoon season, the rubber planter source of income around the country will be affected by the prolonged rainy weather that will prevent them from tapping rubber," Mah said.
The three-month financial aid was previously announced by Prime Minister Datuk Seri Najib Tun Razak last October when tabling Budget 2017. At RM600 for each smallholder, the total cost comes to roughly RM264 million.
In the same budget tabling, the prime minister also announced an allocation of RM250 million towards implementing a floor purchase price mechanism for rubber.
In a separate Parliamentary reply today, Rural and Regional Development Minister Datuk Seri Ismail Sabri Yaakob said the base price for rubber had been fixed at RM2.20 per kilogramme.
Earlier today, Mah had met with Sarawak deputy chief minister Datuk Seri Douglas Uggah Embas in a brief closed-door session to discuss current issues in the Malaysian commodities sector, especially on pepper and rubber plantations.
In the statement, Mah also informed Douglas that his ministry is ready to study the Malaysian Pepper Board's proposal for a safety net mechanism that caters for pepper smallholders.
Sarawak counts the largest number of rubber and pepper smallholders at 114,186 and 23,505 respectively. Overall, there are roughly 24,000 pepper smallholder planters nationwide. The safety net proposal for pepper farmers comes amid weakening pepper prices that has put pressure on smallholders.
Between January and June 2017, the average market price of black pepper and white pepper stood at RM19,071 per tonne and RM30,898 per tonne respectively compared to RM28,835 per tonne and RM49,028 per tonne for the same period in 2016.
"The drastic drop in prices by 33% (black pepper) and 37% (white pepper) has affected the income of almost 24,000 small pepper planters in Malaysia whose majority (98%) are smallholders of pepper from Sarawak," Mah said.
Mah further reassured Douglas in the Putrajaya meeting that the federal government remains committed to champion the welfare of rubber and pepper smallholders nationwide.