BETONG, Oct 14 — The increase in the activation price of the Rubber Production Incentive (IPG) to RM3 per kilogramme has given the country’s smallholders an injection of motivation to continue cultivating rubber trees.

Deputy Rural and Regional Development Minister Datuk Rubiah Wang said the issue of rubber prices was one of the grievances voiced by smallholders, especially those who still have untapped rubber plantations.

"It’s just that we see that the price implementation method was not well known or reached smallholders because the (incentive) mechanism was not yet friendly to farmers.

"To that end, the Rubber Industry Smallholder Development Authority (Risda) is identifying suitable methods for them,” she said after the Sarawak-level Rubber Productivity Improvement Movement (GPPG) programme here today.

Taking the example of Sarawak, Rubiah said as many as 40 per cent or 50,469 smallholders have untapped estates in Sarawak, covering an area of 103,805 hectares out of 258,528 hectares.

She said this while commenting on the tabling of Budget 2024 by Prime Minister Datuk Seri Anwar Ibrahim yesterday which announced that the activation of the IPG involved an allocation of RM400 million.

In this year’s budget, the IPG activation price level has been increased from RM2.50 to RM2.79 per kilogramme.

Regarding the allocation of RM90 million to Risda and the Federal Land Consolidation and Rehabilitation Authority (Felcra), Rubiah said it was more of a replanting programme to encourage smallholders to optimise the use of farmland through agro-food.

"For Risda, it is more of a grant for the old rubber tree replanting programme... we want to encourage the opening of new abandoned land for us to expand special rubber areas to the rural communities,” she said. — Bernama