KPK, MoF To Mull Increasing oil Palm Replanting Grant for Smallholders - Johari

KUALA LUMPUR, Oct 16 (Bernama) -- The Ministry of Plantation and Commodities (KPK) will discuss with the Ministry of Finance (MOF) to increase the assistance provided in the oil palm replanting grant to boost productivity among smallholders. 

Its minister Datuk Seri Johari Abdul Ghani said oil palm replanting among smallholders is very low at only 0.2 per cent, far below the four per cent standard that should be implemented yearly. 

During the question and answer session at the Dewan Rakyat today, he said smallholders also do not implement systematic replanting programmes. 

He said the government has allocated RM100 million for the replanting programme this year by providing a 50 per cent grant to smallholders while the remaining 50 per cent via Agrobank loans. 

“So, in this context, for grant applications, I will discuss with the MOF to increase grant assistance and simplify the process so that smallholders can increase production.

“We used to produce more than 20 million tonnes of palm oil, but today our production has declined to 18.6 million tonnes,” he said. 

He was replying to a supplementary question from Datuk Mohd Isam Mohd Isa (BN-Tampin) on whether the government would increase the funding of the oil palm replanting scheme for smallholders in 2025, reverting the scheme to the full grant of 100 per cent as compared to the current 50 per cent grant and 50 per cent loan. 

To promote replanting, Johari said that the government’s focus extends beyond smallholders.

“Growers who are not included in the category of smallholders are also eligible to receive various incentives such as investment allowances,” he said. 

He was replying to a question from Datuk Siti Zailah Mohd Yusoff (PN-Rantau Panjang) regarding assistance provided by the government to small and medium-sized plantation companies which bear high costs due to old trees as well as efforts to increase palm oil productivity and training courses for smallholders. 

At the same time, the government also urges large growers with high-quality seeds to share those seeds with small growers and small-scale estates before exporting. 

“We have encouraged many other aspects of good agricultural practices for the estates, including planting standards, quality materials, and quality fertilisers.

“The Malaysian Palm Oil Board will guide this initiative to ensure that the estate production is continuously monitored and growing," he said.

-- BERNAMA