A Rubber Production Incentive (IPG) scheme was launched this month by the Malaysia Rubber Board (MRB). Under the scheme, there will be a payment of 25 sen per kg for cup lump at farm-gate level (50% dry rubber content) in Peninsular Malaysia, 65 sen per kg in Sabah and 35 sen per kg in Sarawak.
According to a statement released by the MRB, smallholders have until July 29 to make their claims based on their production in June. The board also added that smallholders who come under government agencies, including the Sabah Rubber Industry Board and the Department of Agriculture Sarawak, have to make their claims through these agencies.
Launched in January 2016, MRB said the IPG will be activated when the monthly average price of Standard Malaysian Rubber 20 free-on-board is at the level of RM5.50 per kg or the farm-gate price is at RM2.20 per kg or less.
Last month, the average price for cup lump at farm-gate level in Peninsular Malaysia was at RM1.95 per kg, Sabah at RM1.55 per kg and Sarawak at RM1.85 per kg.