KUCHING, Oct 23: The New Latex Production Incentive (IPL) pilot project model aims to increase small rubber plantation owners’ income by switching to production of latex instead of scrap rubber (cuplump).
Deputy Prime Minister and Plantation and Commodities Minister Dato Sri Fadillah Yusof said this new model is a more effective latex supply business model as it shortens the marketing chain by allowing smallholders to sell latex directly to processing factories.
“This simultaneously increases the selling price of latex and the income of small rubber farmers.
“For information, the government has allocated a total of RM21 million for the purpose of implementing this IPL programme,” he said during the launching ceremony for the IPL and Malaysian Sustainable Natural Rubber (MSNR) pilot project held in Kg Menderang Community Hall in Sungkai, Perak today, according to a press release.
Fadillah said each small rubber plantation owner who participates in this project, will receive incentives and benefits, namely monthly incentives amounting to RM2.00 per kg (100 per cent dry rubber content) and participation incentive amounting to RM200 per month with a limited period of one year for smallholders who switch to latex production.
He said participants will also receive encouragement incentives up to RM100 per month over a limited period of one year for producing latex, and productivity incentive based on annual productivity that achieves productivity targets between 1,000 to 1,499 kilogrammes per hectare per year (Cluster 1) and 1,500 kilogrammess and above per hectare per year (Cluster 2).
As for selected latex processing factories, Fadillah said that they will receives benefits such as special permission with a limited period of one year to purchase latex on the move and directly from smallholder clusters within the same state.
“They will also receive a loan unit of RRIMeter units (to three processing factories) from Malaysia Rubber Board (LGM) including three specially designed vehicles to transport latex,” he said.
The MSNR pilot project will be rolled out in selected states in Peninsular Malaysia, and Sabah and Sarawak, with the participation of smallholders, rubber traders, and processing factories. — DayakDaily
