03/08/2015 (Bernama) - This year's dividend payout to Felcra Berhad (Felcra) participants is expected to decrease due to the drop in palm oil and rubber prices in the world market.

Felcra chief executive officer Datuk Ramlee Abu Bakar said based on current commodity prices, the total dividend payout for this year was expected to decrease to RM260 million from RM405 million last year.

He said the fall in commodity prices could not be avoided and to some extent had affected Felcra's income, thus reducing the dividend amount.

"However, we will try to balance it by maximising the production," he told reporters at Pahang Felcra's Aidilfitri reception at the Jerantut District Council Hall here yesterday.

Also present were Jerantut member of Parliament, Ahmad Nazlan Idris and Felcra Berhad Regional general manager, Datuk Hazrinor Hisham Harun.

Ramlee said the sources of the dividend were derived mostly from plantation revenue as Felcra had more than 200,000 hectares of land under cultivation.

He said of the total acreage, 170,000 hectares were planted with rubber trees, 40,000 hectares (oil palm) and 4,000 hectares (paddy).

Ramlee said the fall in commodity prices would not prevent the company from paying an interim dividend of RM40 million to about 75,000 participants.

"We will continue to distribute dividends in stages for this year based on the profits from time to time," he said.