PANTAI REMIS, Jan 20 (Bernama) -- Primary Industries Minister, Datuk SeriDr Lim Keng Yaik, on Monday suggested that the relevant agenciesrestructure the methods used by smallholder to produce rubber, palm oiland cocoa, to boost production and compete in the international market.He said that agencies like the Federal Land Consolidation andRehabilitation Authority (Felcra), Federal Land Development Authority(Felda) and Rubber Industry Smallholders Development Authoritiy (Risda),should conduct a study on how to improve smallholders' production toensure a continuous income for them.

These agencies can apply for more land, apart from managing thesmallholders, so that they could be consolidated into a plantation, aswell as come out with a system that could increase production, Dr Limsaid.

"We cannot depend on smallholders with one or two hectares of land toproduce the commodity, which cannot compete in the market, especiallyamist the globalisation era," he told reporters after officiating theopening of the RM3 million Chin Tai Hall, here yesterday.

He said that increasing production was vital in order to compete in theinternational market and it should be noted that a large percentage of thecommodities came from smallholders with cocoa at 90 percent, rubber 80percent and palm oil 55 percent.

Dr Lim said that against the current background, the smallholders who haveexisted since 1960s or 1970s, are lacking in new technology and otherinputs.

"Felda has 600,000 hectares of land in the country while another 300,000hectares did not have settlers. Such land can be consolidated with thesmallholders' lands in order for it to become viable to produce in a largescale," he said.

Dr Lim said that replanting and production control were also necessary tomaintain the price in the market.

"We have done it and it has been proved. Current price for palm oil isaround RM1,650 per tonne compared with RM700 two years ago. While for RSSrubber, it is more than 300 sen per kg compared with 180 sen a year ago.

For cocoa it is only RM2,500 per tonne before, but now it is aroundRM6,500," he said. -- BERNAMA