June 15 2004 - MALAYSIA’S replanting scheme is paying off now that crudepalm oil (CPO) prices are trading at about RM1,500 a tonne, compared withRM700 a tonne when the scheme was created in 2001.

The extra income generated from the higher prices will help sustainplanters while the replanted areas are still under a gestation period,Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kuisaid yesterday.

He was speaking to participants of the 4th National Seminar 2004 on Plantor Perish, organised by the Incorporated Society of Planters in Ipoh.

Chin said that many oil palm estates and smallholdings are in the midst ofreplanting for the second time, and this should be a golden opportunityfor the industry to renew itself to face increasing competition in theglobal edible oils market.

At present, of the 3.8 million ha planted with oil palm, 3.4 million haare matured areas accounting for 13.4 million tonnes of CPO produced lastyear.

Chin anticipates the cultivated areas to grow to 4 million ha and CPOproduction to hit 15 million tonnes by 2006.

Of the 3.8 million ha, 2.25 million ha (60 per cent) are owned by theprivate sector. Felda, Felcra and Risda have 846,000ha (22 per cent),smallholders 388,000ha (10 per cent) and various state schemes 320,000ha(8 per cent).

Chin said that over the last three years, about 60,000ha of

oil palm areas have been replanted annually, an exercise expedited under aRM200 million special fund set up by the Government.

He said planters were given RM1,000 per ha to replant oil palm trees andRM1,100 per ha for conversion of rubber to oil palm.