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According to a report from Malaysia on October 19, Malaysian Minister of Rural Development Datuk Seri Mahdzir Khalid said that the proposal to increase the reserve price of waste rubber from the current 2.
5 ringgit per kilogram to 3.
5 ringgit per kilogram would prevent smallholder farmers from switching to other commodity crops
.
He said that if no action is taken, small rubber farmers will switch to other crops with higher prices, especially oil palm, which will result in the loss of rubber commodity producers in the country
.
Due to the low price of rubber, many small rubber farmers have switched to planting oil palm trees
.
This is why I support the idea of increasing the price of waste rubber
.
Although it is difficult, we must find a way
.
Some media reported on October 15 that the government has been urged to consider raising the reserve price of scrap rubber to RM3.
5 per kilogram starting from January next year to help raise the income of rubber tappers above the poverty line
.
The country’s Rubber Industry Small Farmers Development Agency (RISDA) Chairman Datuk Mohd Salim Mohd Sharif said that the current reserve price of 2.
5 ringgit per kilogram for waste rubber is much lower than that of oil palm, which can reach up to 1,100 ringgit per ton
.
Mahdzir elaborated that in addition to the reserve price, expanding the sales space of rubber products and expanding rubber plantations are two other important measures that can help the country's small rubber farmers increase production and improve their socio-economic status
.
He added that the Sabah Rubber Industry Bureau (LIGS) is a state government agency that has played a role in helping 80,000 small rubber farmers in Sabah by providing a place to sell rubber products.
LIGS currently owns three rubbers in Tamparuli, Tenom and Beaufort.
Processing plant
.
The Tamparuli factory has 300 workers and can produce 150 tons of rubber per day and 50,000 tons of rubber per year
.
In addition to the local market, these products are also exported to China for the manufacture of tires and other products
.
