31/01/2011 (Bernama), Ranau - Smallholders in more than 10 cillages in the Ranau district have become the first to benefit from the government's RM297 million Oil Palm Smallholders Replanting and New Planting schemes.

Both schemes, which is one of the eight entry point project earmarked under the National Key Economic Areas (NKEA),is aimed at increasing the productivity and income of smallholders in the country between 2011 and 2013.

"This year, RM140.2 million has been set aside, of which RM112.2 million, will be to finance smallholders oil palm planting programmes covering 15,000 hectares.

"The government is sensitive to smallholders problems especially financial constraints faced by them in undertaking replanting programmes," said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok after launching both the schemes here Monday.

He said the government had also allocated RM28 million for new planting schemes covering 4,000 hectares.

Dompok also said under the oil palm smallholders replanting scheme, RM7,000 per hectare would be provided for land clearing, supply of high quality seedlings and agricultural input.

In addition, dompok said smallholders with a land below 2.7 hectares would receive farm maintenance assistance of RM500 per month for two years to assist smallholders while waiting for production of fresh fruit bunches.

Meanwhile, in the case of the new planting scheme, he said it was open to independent smallholders in Peninsular Malaysia with a land area of five hectares and below.

In the case of Sabah and Sarawak, application is open to smallholders with a land area of seven hectares and below.

Up to Dec 2010, there were 449,415 hectares of non-productive and low yielding plantation areas which repalnting.

Out of this amount, 109.083 hectares belonged to independent smallholders.

Dompok said both schemes were part of the government's initiative to enhance Gross national Income to RM178 billion in 2020, from RM52.7 billion, at present.

He also urged smallholders to seek the advice of the Malaysian Palm Oil Board on oil palm planting and comply with good agricultural practides to ensure high quality environment friendly yields in long-term.