The Rubber Industry Smallholders Development Authority (Risda) will extend an RM500 one-off assistance each to smallholders in the country.
Risda director-general Datuk Wan Mohamad Zuki Mohamad said the aid is meant to provide relief for smallholders who may be burdened by the declining global rubber prices.
The one-off aid is for registered Risda smallholders, owning a total land area of 2.5 ha and below.
“The average price for a Standard Malaysian Rubber (SMR) 20 has fallen to RM7.50 per kg in March 2013 compared to RM11.20 for the same month last year. The decrease in price saw smallholders earning only around RM700 per month,” said Zuki in a statement, adding that smallholders could earn up to RM1,280 per month, such as when rubber price reached its peak of RM17.17 per kg in February 2011.
Risda, which has allocated RM160 million for the assistance, identified 320,000 smallholders nationwide who are eligible.
Four hundred smallholders from Kuching and Samarahan have recently received the aid.
The group is expecting to achieve a target of RM2,500 income for each smallholder by 2015. But at the rate things are going, especially with the trend in the rubber prices, it may not be probable to hit this target.
“If the trend continues for several months, we will have to resort to our contingency plan. It will involve upgrading the plantation system and better fertilisation to ensure bigger harvest,” he said.