KOTA KINABALU – The Sabah Rubber Industry Board (SRIB) has refuted allegation by the representative of the rubber smallholders association that rubber prices paid to smallholders in the state were not reasonable.
SRIB general manager Datuk Harris Mathews recently said smallholders association representative Chua Men Nam’s claim that the smallholders’ rubber prices in Sabah and Peninsular were not the same was not logical because rubber produced here has to be exported through Port Klang or Singapore, a distance of more than 1,000 km.
He said all processed rubber had to be freighted and transshipped in Port Klang or Singapore for onward port designations in China, India, Europe, America and Australia, due to the lack of mother shipping from Kota Kinabalu to designations in importing countries.
He explained that the freight, port handling, transshipment and insurance charges would cost an additional 36 sen/kg for rubber exported from Sabah as compared to processors in the Peninsular of eight sen/kg.
“In short, Sabah rubber costs 28 sen more than Peninsular Malaysia to export. Hence, there will be a price difference between Sabah and Peninsular Malaysia,” said Harris, adding that the matter had already been explained to Chua umpteen times during the last five years.
He said Agriculture and Food Industry Minister Datuk Seri Panglima Haji Yahya Haji Hussin had also explained the higher export cost being incurred by the state during the State Assembly sitting and in the media.
In addition, SRIB had explained the price difference between Sabah and in the peninsula to the Ministry of Plantations Industries and Commodities.
“The board is unable to explain further if Chua doesn’t want to understand the logistical reasons for the difference in price,” said Harris in a statement.
In giving examples of price differences, Harris said industrial diesel in Sabah cost 7 sen/l more than in the peninsula and added that the industrial diesel component of SMR production cost was 22.23 %.
Another example is that Peninsular Malaysia’s newspapers cost RM1.80 in Sabah as compared to in Peninsular of RM1.20. Goods in supermarket are higher than in Peninsular. This is understandable due to geographical distances.
According to Harris further, SRIB has been providing total assistance to rubber smallholders in Sabah.
He said SRIB provides assistance from land clearing and preparation, planting, fertilizer, chemicals and maintenance of their holdings for five years free of cost amounting to RM14,000/ha.
At maturity, SRIB provides free tapping training, provide latex cups, hangers, spouts and tapping knives costing RM600/ha. We also provide free management and supervision cost amounting to RM1,500/ha.
“In short, SRIB provides RM16,100/ha in assistance to rubber smallholders in Sabah in developing one hectare of their land. The smallholders need not pay one cent back to the board or government,” said Harris, adding that with this explanation, the rubber smallholders were misled.
He said SRIB had suggested to the Federal Ministry of Plantations Industries and Commodities that should the rubber prices be the same as in the peninsula, the federal government must provide a subsidy to rubber smallholders in Sabah of 28 cents/kg in the short term.
In the long term, the central government must ensure mother shipping from Kota Kinabalu to importing designations and ports with competitive freight charges, frequencies and on schedule deliveries to avoid default in contract agreements, he added.
Source: The Borneo Post