DALAT, 5 Sept (Bernama) — Rubber smallholders will not receive the Rubber Production Incentive (IPG) until it is triggered once the SMR 20 FOB price drops to RM4.60 per kg or less.
Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas said however, until now the SMR 20 price had not fallen below the RM4.60 level to trigger the IPG and warrant its disbursement.
He was speaking to reporters after launching the Balau Dalat Carnival here today.
He was responding to a call from the National Association of Smallholders Malaysia, urging the government to disburse the IPG to smallholders with the payments backdated to January as the rubber price had fallen as low as RM4.90 for the last six months.
Following cabinet approval on Aug 26, the activation price for IPG was increased from RM4.60 kg to RM5.10 per kg with effect from Sept 1.
On B10 biodiesel, which is set for launch next month, Uggah said the implementation date been postponed pending cabinet’s approval.
“We are preparing a cabinet paper on it and it depends on cabinet decision,” he said, adding that the prime minister wants B10 biodiesel to be implemented to increase the use of palmoil in the domestic market.
Uggah said Indonesia is already using B15 biodiesel.