SUNGKAI, Oct 23 — The participation incentive payment of RM200 per month is among the four incentives for rubber smallholders who switch to latex production under the Latex Production Incentive (IPL) programme.
Deputy Prime Minister and Plantation and Commodities Minister Datuk Seri Fadillah Yusof said growers will also receive a monthly latex production incentive amounting to RM2.00 per kilogramme based on 100 per cent dry rubber content.
“In addition, planters will also receive an Incentive payment of RM100 per month with a limited period of one year.
“Besides that, they will also receive productivity incentive based on annual production target of between 1,000 to 1,499 kg per hectare per year (Cluster 1) and 1,500 kg and above per hectare per year (Cluster 2),” he said when launching two pilot projects, a New Model of Latex Production Incentive (IPL) and Malaysian Sustainable Natural Rubber (MSNR) at the Sungkai Statistics Training Centre here today.
The IPL programme is to help rubber smallholders increase their income by encouraging them to switch from scrap rubber (cup lump) to latex production.
The programme implemented through the Malaysian Rubber Board (MRB) is a one-year pilot project involving several states, namely Perak, Kedah and Sabah, with an estimated 1,500 participants and three processing factories.
Meanwhile, he said, for selected latex processing factories, special permission is given with a limited period of one year to conduct mobile purchase of latex directly from smallholders in the same state.
The factory can obtain a loan for three RRIMeter processing units from MRB as well as the loan for three special design vehicles to transport latex.
RRIMeter is an MRB technology that can help smallholders and processing factories in determining the dry rubber content (DRI) quickly and accurately, which in turn will determine the price for rubber trading activities at the ground level.
At the press conference, Fadillah said the IPL initiative is expected to increase the income of small rubber farmers by up to 40 per cent and increase latex production for the country’s needs.
“In comparison, if the current price of frozen (scrap) rubber is RM3 per 1kg (ceiling price), latex can reach more than RM5 per 1kg, so this will give more income to rubber tappers,” he said.
He said that in 2022, the value of the country’s latex imports reached RM3 billion and with the transition of rubber smallholders to latex production, it is hoped to reduce dependence on the import of the commodity.
At the same event, Fadillah also launched the ‘mobile counter van’ that will provide services in the interior and areas which are far from the existing Malaysian Rubber Board office.
He also visited two latex collection centres at the multipurpose hall of Kampung Menderang and the Orang Asli hall in Kampung Menderang here.
