31/01/2009 (Bernama), Tanah Merah - The Rural and Regional Development Ministry has allocated RM240 million to assist the development of rubber and palm oil smallholders throughout the country.

Rubber Industry Smallholders Development Authority (Risda) chairman Tan Sri Abdul Rahim Tamby Chik said the bulk of the allocation would be used to implement replanting programmes involving 194,000 hectares that had been identified.

"Apart from catering for development, the funds allocated will also be used to assist smallholders to replant rubber trees," he told reporters after launching a Replanting campaign here today.

Abdul Rahim said Kelantan received an initial figure of RM16.5 million to develop and replant 29,316 hectares of Felda land with rubber and palm oil.

"For the development of every hectare, smallholders will receive RM7,000 and the figure may increase from time to time," he said.

He added that apart from Kelantan, areas identified for the replanting programme would involve 38,823 hectares in Pahang, 14,000 hectares in Terengganu, Selangor (11,000 hectares), Perak and Kedah (24,000 hectares) respectively and Johor (16,000 hectares).

Abdul Rahim said developing these areas and replanting rubber or palm oil was vital to provide a source of income for the people.

"We hope smallholders will come forward and register their land that was ready for replanting so as to receive the RM7,000 an hectare allocation," he said.