KUALA LUMPUR: A total of RM149 million was disbursed for claims made under the Rubber Production Incentive (IPG) between January and October, the Dewan Rakyat was told today.
Plantation Industries and Commodities Minister Datuk Dr Mohd Khairuddin Aman Razali said this was among initiatives to assist especially rubber tappers who were badly affected by unstable prices due to the United States-China trade war and Covid-19 pandemic.
"IPG is a support mechanism to the Activation Pricing Level (PHP) for scrap rubber currently set at RM2.50 per kg.
"Rubber farmers are also encouraged to practise crops integration to increase income. Some farmers at the LKIM station in Lakai, Negri Sembilan, had managed to earn up to RM4,000 a month by planting pineapple," he said to a question from Datuk Seri Idris Jusoh (BN-Besut).
Among the fruits that were suitable for farm integration were papaya, pineapple and durian, while there was also an oppotunity for stingless bee farming.
Khairuddin said, come January next year, it would be compulsory for all licence holders to install and use the RRIMNiaga app to replace the manual method of filing claims.
The app, which could be accessed without Internet, served to record information of licence holders, buyers and dealers registered with the Malaysian Rubber Board, while expediting IPG application process.
Khairuddin said IPG payments would be deposited directly into the bank account of eligible applicants, and smallholders are assured of an income and their welfare when rubber prices are low.
"We also encourage the farmers to be involved with cooperatives, which would be able to buy crepe rubber from them at a higher-than-market price."
To a supplementary question, Khairuddin said the revolving fund for IPG of RM300 million, which was raised was double the amount set for 2020 due to the price uncertainty that was expected to continue amidst the pandemic.
"Also, we will make it compulsory for licence holders to use RRIMNiaga from January, which would see the amount of claims increased (next year)," he said, adding that the floor price is set when the PHP was activated.