The Edge Markets (07/08/2019) - KUALA SELANGOR (Aug 7): The Oil Palm Smallholders Replanting (TSPKS) and the Oil Palm Smallholders Agriculture Input (IPPKS) soft loan schemes do not burden smallholders as they can afford the 2 percent annual interest rate, said Primary Industries Minister Teresa Kok.

She said the schemes are fairer than the old replanting assistance scheme they replace.

"An RM550 million fund is allocated for the schemes announced by the Government in July. We want to be fair to all quarters, including organised smallholders in Felda and Felcra areas, some of whom previously did not benefit from the replanting assistance scheme.

"Smallholders wishing to replant oil palm may apply for the two soft loan schemes from Aug 15.

“It is part of the Government’s efforts to help ease their financial burden when purchasing seedlings and fertilisers,’’ she told reporters after a dialogue with oil palm planters in Selangor here today.

Also present were Malaysian Palm Oil Certification Council (MPOCC) chief executive officer Chew Jit Seng and director of the Malaysian Palm Oil Board’s (MPOB) Integration Research and Extension Division, Dr Ramle Moslim.

Kok stressed that the Government will not revive the old replanting assistance scheme for these smallholders despite protests from various quarters.

The TSPKS scheme is expected to benefit between 7,000 and 10,000 smallholders with a combined estimated planted area of 50,000 hectares.

The IPPKS scheme, meanwhile, is expected to benefit 3,000 to 5,000 smallholders with planted areas totalling 20,000 hectares.

Various quarters, including smallholders, recently objected against the abolition of the assistance scheme, saying the newly introduced repayment method is burdensome.

Read more at https://www.theedgemarkets.com/article/oil-palm-soft-loan-schemes-dont-burden-smallholders-%E2%80%94-kok