The government has allocated RM350 million to increase the IPG rate to RM2.70
KUALA LUMPUR - The Plantation and Commodities Ministry has agreed to raise the activation price of the Rubber Production Incentive (IPG) from RM2.50 to RM2.70 per kilogram with an allocation of RM350 million.
Its Deputy Minister Datuk Seri Aminah Aching said the government is always concerned regarding the welfare of rubber tappers whose income has been affected when the price of rubber declined.
"The Prime Minister when retabling the revised Budget 2023 on Feb 24 had agreed to increase the price of IPG activation.
"In regards to the proposal to increase the flooring price of rubber scrap to RM4.50 per kilogram, the ministry will first implement the IPG activation price as presented in the revised 2023 Budget," she told the Dewan Rakyat today.
She said this when answering a question from Muhammad Ismi Mat Taib (PN - Parit) who asked if the government had plans to raise the IPG rate from RM2.50 to RM4.50 at this time.
However, Siti Aminah said the ministry will refine the proposals with the ministry and agencies involved, and it is subject to the government's current financial capacity.