No Plans To Raise IPG Activation Price Above RM3 Per Kg -- KPK

KUALA LUMPUR, Feb 27 (Bernama) -- The Ministry of Plantation and Commodities (KPK) currently has no plans to raise the Activation Price Level (PHP) for the Rubber Production Incentive (IPG) beyond RM3 per kilogramme (Kg).

KPK said this decision took into account the current rubber prices, which show signs of stability and growth.

“Starting from 2024, the PHP for IPG has been increased to RM3 per Kg with an allocation of RM400 million, as announced in Budget 2024.

“Through the implementation of this IPG, smallholders will receive farm-level prices for cup lump rubber (with 50 per cent dry rubber content) based on the PHP of RM3 per Kg,” the ministry said in a written response to the Dewan Rakyat, published on the Parliament website on Thursday.

KPK was replying to Muhammad Ismi Mat Taib (PN-Parit), who asked whether the ministry would increase the IPG payment for small-scale rubber tappers nationwide.

The ministry said that for 2025, the IPG implementation will continue with an allocation of RM171 million, which the government has approved.

Additionally, KPK and the Malaysian Rubber Board (MRB) are currently studying improvements to the IPG mechanism.

“The study will focus on providing incentives based on productivity increases and more targeted assistance to ensure maximum effectiveness and benefits for rubber smallholders,” it said.

Meanwhile, KPK, responding to Datuk Awang Hashim (PN-Pendang), said that MRB is implementing various initiatives to encourage new innovations among rubber tappers, to enhance the productivity of the national rubber industry.

Awang had inquired about the steps being taken to promote new innovations among rubber tappers.

KPK said that these measures are not only aimed at increasing yields and incomes for tappers but also at supporting the long-term sustainability of the national rubber industry.

“Among these initiatives are the development of new clones, stimulant technology, innovative tapping knives, automated tapping machines, the strengthening of Good Agricultural Practices (GAP), bio-fertiliser innovations, as well as training and workshops,” it added.

-- BERNAMA