KUALA LUMPUR, Dec 21 (Bernama) -- The Ministry of Primary Industries hasextended the due date for oil palm replanting scheme to end of June 2002from Dec 2001.

"The extension takes place as todate. The ministry had receivedapplications to replant 174,000 ha and only 44,000 ha have been cleared,"Primary Industries Minister Datuk Seri Dr Lim Keng Yaik told reportersafter a meeting with delegates from The Solvent Extractors' Association ofIndia here Friday.

Explaining the poor response to the scheme from farmers, Lim said thescheme was introduced at a time when the prices of palm oil were lower.

"As the prices have improved, farmers tend to hold for clearing process,"he said.

The government's oil palm replanting scheme was introduced in March thisyear aimed at reducing supply in the market by 600,000 tonnes to help theprice to recover.

Earlier in July, the government had announced that RM1,000 per ha would begiven to small holders and plantation company as an incentive if theyimplemented the scheme. -- BERNAMA