Rubber smallholders enjoying higher income

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KOTA KINABALU: Deputy Chief Minister Datuk Seri Panglima Hj Yahya Hussin is happy that Sabah’s rubber smallholders are reaping higher income.

He said the international price for Standard Malaysian Rubber 20 (SMR20) increased from its low of RM4.70 per kilogram early last year to RM9.68 per kilogram now.

The price increase was caused by shortage of the commodity in the world market due to flooding in southern Thailand, he said.

Yahya, who is also Minister of Agriculture and Food Industry, added the global price hike had pushed up the smallholder rubber prices in Sabah  from a low of RM1.50 per kilogram for cuplumps at 50% dry rubber content to a high of RM3.75 per kilogram as of now.

He said the increase had resulted in rubber smallholders earning between RM2,500 per month to RM7,000 per month.

Yahya also reminded the smallholders that the government had a social safety net policy in place for rubber smallholders 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.  It means that if the actual price of cuplumps (50% dry rubber content) is RM1.50 per kilogram, the government will top up the difference of 0.70 sen per kilogram.

The federal government has paid RM22 million to rubber smallholders in Sabah from September 2015 to October 2016 through the Sabah Rubber Industry Board under this programme.

Yahya thanked the federal government, specially Prime Minister Datuk Seri Najib Tun Abdul Razak for assisting rubber smallholders in Sabah during the difficult times.

He also gave examples of the earnings of smallholders in December 2016 in the various districts namely, Pondok bin Sualan of Tuaran earned RM6,476.75; Angkimis Ampait (Nabawan) RM6,935.30; Tham Swee Min (Tenom) RM5,946.35; Michael bin Asnag (Keningau) RM8,547.95; Patrik Kambingi (Kota Marudu) RM5,823.75; Sail bin Serlesig (Kota Belud) RM4,971.90 and Ali bin Baru (Sipitang) RM4,035.45.

Yahya also thanked the Prime Minister for giving funds to rubber smallholders for replanting and new planting of rubber through the Sabah Rubber Industry Board amounting to RM321,217,238 from 2012 to 2016 to plant 26,518 hectares of rubber in Sabah.

A total of 8,540 smallholders were assisted under the National Key Economic Area (NKEA) programme.

In 2017, the federal government has allocated RM65,500,000 to further replant and newly plant 3,856  hectares and maintain planted areas through the Sabah Rubber Industry Board.

A total of 1,285  additional smallholders will be assisted in 2017.