KUALA LUMPUR: Rubber smallholders who replant their land with oil palm trees between 2010 to 2016 are expected to receive about RM4,000 from the government through the remittance of “cess” charges.
Felda Youth Council president Muhammad Fadzli Hasan said the long-awaited announcement is great news for all rubber planters who chose to plant their lands with other agricultural commodities.
The remittance of cess charges was announced by Prime Minister Datuk Seri Najib Razak during the tabling of the 2018 Budget today.
“The initiative will relieve the financial burden of these smallholders, who had to fork out huge sums of money in the past,” Fadzli said when contacted today.
He added that rubber smallholders had to pay RM40,000 on average to replant their lands with oil palm trees.
“In the past, many settlers borrowed money from Felda. Now, these people can use the cess remittance to pay off their loans,” he added.
Najib had said the remittance would benefit a total of 8,925 Felda settlers nationwide, involving an allocation of RM43 million.
Meanwhile, National Felda Settler Chief Shamsuddin Othman said this year’s budget will alleviate the burden of most Felda settlers.
He also welcomed the government’s RM200 million allocation to upgrade the water supply systems and roads in all Felda settlements nationwide.
“In the future, we hope the government will pay for the electricity bills for all light poles in the settlements. At present, the settlers are the ones who pay for them.
“This is unlike in other rural areas, where the bill is footed by the Rural and Regional Development Ministry. We hope Felda settlers will get to enjoy this amenity for free, too.”
He also said the government’s plan to construct homes for second-generation Felda settlers would solve the problem of settlers not being able to afford their own houses.