Jabu (third right) speaking at the press conference at Wisma Bapa Malaysia,with Uggah on his right.
KUCHING: Rubber smallholders in Sarawak can heave a sigh of relief with the implementation of the Rubber Production Incentive (IPG) in effective Sept 1 this year.
The IPG according to Deputy Chief Minister Datuk Patinggi Tan Sri Alfred Jabu is to aid smallholders facing stiff challenges from the slump in rubber prices in the market.
“The state government is aware that a majority of these smallholders are from the rural areas where the source of income is dependent on the price of rubber,” Jabu told a press conference at Wisma Bapa Malaysia yesterday.
The IPG mechanism, he explained, would provide incentives to smallholders on a monthly basis based on the average difference in price of rubber cup lumps (SMR20) once it goes below RM2 per kilogramme.
For example, if the average price of rubber cup lumps in a month is RM1.80 (below the triggering price of RM2), the government would reimburse the 20 sen difference as an incentive.
“However, only holders of the Smallholder Transaction Authority Permit Card (PAT-G) are eligible for the incentive,” said Jabu, who is also Minister of Modernisation of Agriculture.
He also revealed that as of Sept 21, only 7,421 rubber smallholders in Sarawak had applied for the permit out of a total 74,614.
This was despite the programme carried out by the ministry some six months ago.
“PAT-G cardholders only need to submit their sales receipt from their purchasing agents as proof to collect their incentives,” he added.
Jabu is urging all rubber smallholders to take advantage of the IPG and also to register for the PAT-G card at any sub-district, district or divisional offices.
Registration can also be made at any Agriculture Department before Oct 31.
He said the IPG was mooted after two years of studies by the state and federal government spearheaded by Plantation Industries and Commodities Minister Datuk Seri Douglas Uggah Embas.
Meanwhile, the state and federal government are looking into ways to help smallholders produce rubber sheets and latex which can fetch a higher price in the market compared to rubber cup lumps.
Jabu said among the long-term plans for Sarawak was to get rubber smallholders to produce latex to meet the demand of manufacturers of surgical gloves.
“For this to happen, we have to look at ways to make this (latex production) sustainable by bringing in experts from the state and peninsula for studies.”