Malaysia’s Rubber Production Incentive Scheme (IPG) is revised to ensure that 300,388 rubber smallholders will not fall below the poverty line if the rubber prices go low.
The Ministry of Plantation Industries and Commodities allotted RM100mn for the IPG. In the previous years, rubber farmers will receive aid if SMR 20 FOB price is RM4.60/kg or less.
The smallholders will receive 30 sen/kg for cuplumps, 90 sen/kg for latex, and up to 60 sen/kg for Unsmoked Sheet (USS) rubber depending on dried rubber content.
But the under the revised program, the activation price has been moved from RM4.60/kg to RM5.10/kg. The rates of the incentives were also changed from a fixed rate to a scale of between 10 sen to RM1.45/kg for cuplumps.
The revised version of the IPG was approved and will took effect on September 1.
The scheme ensures that smallholders will continue rubber tapping, to maintain the country’s annual production of 700,000 tonnes. Steady rubber production will support downstream industries like rubber glove production and decrease the need to import natural rubber.