MARKET DEVELOPMENT
Incentives In Budget 2015 Will Help Commodities Industry, Says Uggah
Incentives In Budget 2015 Will Help Commodities Industry, Says Uggah
11/10/2014 (Bernama) - The incentives for commodities announced in Budget 2015 today will help alleviate the problems faced by the industry, especially the poor prices for rubber and palm oil, said Plantation Industries and Commodities Minister Datuk Douglas Uggah Embas.
He said the ministry is currently working on a rubber production incentive mechanism for rubber smallholders, while the government has also approved export duty exemption extension for crude palm oil until December.
"The CPO price is now low. Initially, we suspended the export duty from September to October and it appeared to be effective. The extension we hope will assist palm oil producers in their exports," he told Bernama following the budget announcement.
Prime Minister Datuk Seri Najib Tun Razak tabled Budget 2015 in Parliament today.
He announced that the Malaysian Rubber Board (MRB) would allocate RM100 million to implement a regulatory price mechanism at the farm level to protect smallholders from losses, particularly when the world market price falls below a minimum fixed price.
Najib, who is also Finance Minister said the MRB will also provide soft loans of RM6.4 million as working capital to 64 smallholder cooperatives to buy rubber directly from 442,000 rubber smallholders nationwide.
He also announced the continuation of the new replanting incentive and replanting for oil palm smallholders with an allocation of RM41 million as well as an extension of the exemption of export duty for cruder palm oil up to December.
He said the ministry is currently working on a rubber production incentive mechanism for rubber smallholders, while the government has also approved export duty exemption extension for crude palm oil until December.
"The CPO price is now low. Initially, we suspended the export duty from September to October and it appeared to be effective. The extension we hope will assist palm oil producers in their exports," he told Bernama following the budget announcement.
Prime Minister Datuk Seri Najib Tun Razak tabled Budget 2015 in Parliament today.
He announced that the Malaysian Rubber Board (MRB) would allocate RM100 million to implement a regulatory price mechanism at the farm level to protect smallholders from losses, particularly when the world market price falls below a minimum fixed price.
Najib, who is also Finance Minister said the MRB will also provide soft loans of RM6.4 million as working capital to 64 smallholder cooperatives to buy rubber directly from 442,000 rubber smallholders nationwide.
He also announced the continuation of the new replanting incentive and replanting for oil palm smallholders with an allocation of RM41 million as well as an extension of the exemption of export duty for cruder palm oil up to December.