Proposal to raise floor price of scrap rubber to RM3 per kg will be brought to MOF - Fadillah

KUALA KANGSAR - A proposal to raise the floor price of scrap rubber to at least RM3 per kilogramme will be brought to the Finance Ministry (MOF) for due consideration, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said the proposal was based on requests from smallholders who described the amount as appropriate following the increasing cost of agricultural inputs.

"Previously in the 2023 Budget, it was raised from RM2.50 to RM2.70, but there are still requests from growers to raise (the floor price) again.

"We will take it to the MOF level and consider it according to the government’s capabilities,” he said after flagging off the Plantations and Commodities Ministry (KPK) Northern Zone's Commodity Trek event here today.

Previously, there was a proposal to review the floor price of scrap rubber to at least RM3 per kg compared to the RM2.70 announced in Budget 2023.

Meanwhile, Fadillah, who is also the Minister of Plantations and Commodities, said in his speech that today's trekking event is part of a programme to go to the ground to meet customers and stakeholders of KPK Year 2023.

The programme targets three zones which are the northern part of the peninsula, Sabah and Sarawak. The northern zone of the peninsula is the first destination of the programme.

"A key element of this Commodity Trek is to empower smallholders and related stakeholders. I was also able to meet the farmers personally, to hear and see for myself the effectiveness of the government’s policies, initiatives and incentives in ensuring the well-being of the people,” he said.

Fadillah said the programme is also an aggregate platform to collect information and views of the target group to formulate policies and find a proactive and effective approach for smallholders and industry players including agricommodity sector operators.

He said the venue of Kuala Kangsar was chosen as the location of the ‘flag-off’ for the northern zone of the peninsula because of its historical value of the natural rubber industry in Malaysia.

"It has its beginnings since 1877 when 11 saplings of rubber trees brought by H. J. Murton from the Botanic Gardens of Singapore to this country were successfully planted and flourished,” he said.

"Nine out of 11 rubber saplings were brought to Kuala Kangsar to be planted and started flowering in 1880 and produced fruit in 1881.

"Today, one of the country's first rubber trees is still firmly standing next to the Kuala Kangsar District and Land Office," he said.

The rubber tree is said to be approximately 146 years old. - BERNAMA