KUALA LUMPUR (Oct 17): The Malaysian government has allocated 100 million ringgit ($30.4 million) to support rubber farmers following a slump in global prices to five-year lows.
Minister of Plantation Industries and Commodities Douglas Uggah Embas said in a statement that the incentives from January 2015 would encourage rubber growers to keep tapping, after estimates that 30 percent of farmers had stopped.
The subsidy programme will be activated when the price of SMR20 grade rubber falls to 4.60 ringgit per kg.
The Malaysian government first announced the 100 million ringgit programme during last week's budget statement. (1 US dollar = 3.2860 Malaysian ringgit)