Malaysia activates rubber production incentive for January 2021

rubber plantation

The Malaysian Rubber Board (MRB) announced the activation of the Rubber Production Incentive (IPG) for January 2021 in the peninsula, Sabah, and Sarawak.

The activation was due to the average farm-level rubber price in January 2021 for cup lump or scrap rubber being at RM2.45 per kg in the peninsula, RM2.15/kg in Sabah, and RM2.25/kg in Sarawak.

MRB said that the IPG is active for January 2021 with payments in the peninsula at 5 sen/kg, 35 sen/kg in Sabah,  and 25 sen/kg in Sarawak.

Starting from January 2019, the IPG will be activated if the average monthly price of Standard Malaysian Rubber 20 (SMR 20) free onboard grade rubber is at RM6.10/kg or the farmgate price is RM2.50/kg and below.

The smallholders have until the end of February 2021 to make their claims, MRB advised. 

The activation of the IPG provided by the Federal Government is meant to help rubber smallholders in the country, including those in Sabah and Sarawak, when the price of the commodity is low.