Various incentives for oil palm smallholders to raise output

KOTA MARUDU: The government is always appreciative and recognises the contribution and role of oil palm smallholders in the country.

To this end, the government provides the oil palm smallholders with various opportunities and incentives which they can use to improve productivity and increase their income.

“The encouraging palm oil industry growth has contributed vastly to the country’s economic growth and in 2011, oil palm plantations in Malaysia made up to five million hectares which is 73.2 per cent of the total agricultural land in the country”, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said.

Speaking at a gathering with oil palm smallholders from the district yesterday, Dompok disclosed that of the five million hectares planted with oil palm in the country, 40 per cent belonged to smallholders making them a force to be reckoned with in the country’s palm oil industry.

He also disclosed that export revenue derived from palm oil products recorded a high last year at RM83.4 billion which was an increase of 34 per cent compared to RM62.2 billion in 2010.

“With anticipated revenue growth, the average annual income of oil palm smallholders is also expected to increase by 47 per cent from RM4,794 in 2010 to RM7,047 by 2020,” he said.
Dompok also said that under the Sustainable Palm Oil Cluster concept, the setting up of Sustainable Oil Palm Growers Cooperative by smallholders is in line with the country’s Commodities Policy.

Under this concept, smallholders will be guided on practices to increase productivity as well as using quality palm oil based products that is in accordance with the priciples as well as sustainable palm oil production.
To ensure that the sustainable palm oil production’s objective is achieved, the Malaysian Palm Oil Board is currently holding a campaign to certify smallholders as well as to provide them with awareness and exposure towards producing sustainable products.

“The government also encourages smallholders to cut down rubber trees aged 25 and above so that they can replant new trees. For this purpose the government has allocated RM1.02 billion for 2011 and 2013, The fund will be channelled through the Malaysian Palm Oil Board (MPOB) under the palm oil National Key Result Area (NKEA).
“Under this programme, smallholders will be given RM9,000 in quality seedlings for each hectare of their plantation. The financial assistance also covers input and management aid according to the Good Agriculture Practices to ensure high quality produce,” he said.

Smallholders with plantations less than 2.5 hectares will also be qualified for the management assistance fund of RM500 a month for two years, he said and urged smallholders who qualify to immediately contact MPOB to apply for the assistance.

In the context of mechanisation, MPOB is also offering a discount scheme for smallholders who wish to purchase the cantas, a mechanised harvesting tool. Dompok said that RM5.3 million had been allocated under the scheme where smallholders would be entitled to RM1,000 for the purchase of each cantas.

During the event, he also launched MPOB Kota Marudu’s branch, the Kota Marudu Persatuan Pekebun Kecil Sawit Bumiputera Kota Marudu and presented assistance to qualified smallholders.


Read more: http://www.theborneopost.com/2012/11/13/various-incentives-for-oil-palm-smallholders-to-raise-output/#ixzz2C7EVyn8D