Govt mulls RM2.50 per kg incentive for rubber tappers

Govt mulls RM2.50 per kg incentive for rubber tappers

The current rate of RM2.20 is considered low.

Rubber smallholders are being encouraged to collect latex, which fetches about RM1.50 a kg more than cup lump, with rubber glove manufacturers having to import latex from Thailand. (Bernama pic)
JELEBU:
The government has agreed to consider raising the Rubber Production Incentive (IPG) payment to RM2.50 a kg from the current RM2.20 a kg, says Primary Industries Minister Teresa Kok.

She said she tabled a motion on the matter to the Cabinet yesterday and the finance ministry had agreed to study the proposal.

“The current rate is RM2.20. If rubber prices fall, the government through the Malaysian Rubber Board (LGM) will top up.

“For this, the government is allocating RM294 million to make up for the shortfall for all rubber tappers.

“However, the rate is considered low by rubber smallholders, and we calculate that if we raise the IPG payment to RM2.50, the government needs to pay RM657 million to all these rubber tappers,” she said after visiting the LGM rubber collection centre here today.

She explained that if the IPG rate is raised further, the government would have to bear a heavy burden.

“Not just rubber tappers, but also oil palm and other smallholders are also facing difficulties,” she said.

On another matter, she said rubber smallholders are encouraged to collect latex, which fetches about RM1.50 a kg more than cup lump, noting that several world-renowned rubber glove manufacturers have had to import latex from Thailand.

Intercropping with crops such as pineapples and mangoes could help supplement rubber tappers’ incomes during the monsoon season, she added.

In the 2019 Budget, the government allocated RM50 million for the IPG scheme nationwide.

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