KUALA LUMPUR, Oct 29 (Bernama) — The Rubber Production Incentive (IPG), which helps smallholders offset the impact of falling rubber price, was implemented in Sabah last month, the Ministry of Plantation Industries and Commodities said.
It said the incentive rate of 25 sen per kg would be given to rubber smallholders when the price of cuplumps dropped below RM2.00 per kilogram (kg).
“Sabah was given an IPG allocation of RM2 million which will be disbursed through the SabahRubber Industry Board,” the ministry said in a statement today.
As at 2014, Sabah has the highest number of rubber smallholders at 36,415, of them, 16,000 were active rubber tapers, while the rubber acreage was ??104,041.77 hectares.
Prime Minister Datuk Seri Najib Tun Razak, in tabling Budget 2016, announced the IPG activation price of SMR 20 FOB is raised from RM4.60 to RM5.50 per kg from January 2016.
For scrap rubber or cuplumps, the price is raised from RM1.75 to RM2.20 per kg at farm price.
The ministry said the approved incentive rate is between 10 sen and RM1.45 per kg for cuplumps, subjected to 50 per cent dry rubber content (DRC), and a maximum of 90 sen per kg for latex with DRC,” the ministry said.
It said the incentive would also cater to unsmoked rubber sheets.
“The IPG implementation will enable rubber smallholders to earn up to RM512 per hectare based on the average productivity of cuplumps of 1,500 kg per year,” it added.