BAGAN DATOH, Feb 7 (Bernama) -- The Agriculture and Agro-based Industries Ministry has allocated RM650 million to redevelop the coconut industry, which has been badly affected as large tracts of land for the commodity were replaced by oil palm and rubber.

Its minister Tan Sri Muhyiddin Yassin said the development had caused shortage of coconuts in the country and to offset the situation, the government would be replanting 100,000 hectares with the fruit at a cost of RM6,500 per hectare during the Ninth and 10th Malaysia Plans.

The development of the project would be done in stages with the allocation to be spent on infrastructure, seedlings, irrigation and training courses, he told reporters after having a dialogue with coconut farmers from Bagan Datoh and Rungkup, here Tuesday.

Also present were Deputy Information Minister Datuk Ahmad Zahid Hamidi, who is also Bagan Datoh Member of Parliamentm, and Perak Exco members.

He said coconuts of the Matag species would be chosen for the project as it bore more fruits compared with the Malaya Tinggi species, which had been planted over the last 20 years.

"Matag will be produced for local consumption and export as the species is suitable for making medicinal and food products, he said, adding that its oil was highly sought after.

In Bagan Datoh, he said, coconuts would be replanted on 16,000 hectares of land at a cost of RM114 million.

-- BERNAMA