15/03/2011 (The Borneo Post) - An initial allocation of about RM14 million had been approved by the federal government for subsidising oil palm planting scheme in the state.

The fund was part of the RM297 million allocated by the federal government through Malaysian Oil Palm Board (MPOB) for the oil palm replanting and planting subsidy scheme throughout the nation.

“MPOB could utilise the initial allocation to subsidise a total of 2,000 hectares of new palm oil farms in the state,” said Modernisation of Agriculture (Food Industries) Assistant Minister, Datuk David Teng after a dialogue session between local farmers and a representative of MPOB here yesterday.

Applications for the scheme were to be submitted in groups of at least 10 farmers each, he said, adding, they could be owners of agricultural or Native Customary Rights (NCR) land.

“The subsidy, in the forms of planting materials (seedlings), fertilisers, pesticide, weed killers and clearing expenses worth RM7,000 per hectare was a one-off assistance to be given in stages,” he said.

For a start the successful applicants would be given subsidies for two hectares each after which they could apply for additional subsidy.

However, the subsidy was restricted to only 5 hectares per applicant, he explained.

The allocation for the state was mainly for the oil palm planting subsidy scheme, Teng said, adding, it was meant for ‘group farming’ aimed at encouraging local farmers to open new oil palm plantation or mini estates.

Teng who was briefed on the scheme by an officer from MPOB Sessang, Saratok, Vincent Marcos after the dialogue session, called on local farmers to venture into oil palm farming given the crop’s marketability and stable price.

During the function, Teng who is also Repok assemblyman witnessed the presentation of the application for the palm oil planting subsidy scheme from two groups comprising of 64 NCR local land
owners.

The application forms which had been duly verified and certified by the local community leaders, assemblyman and MP were handed over by Teng’s private secretary, Soon Kong Tiong to Vincent.