Malaysia: Ministries to mull oil palm replanting grant hike for smallholders

Published 2024년 10월 17일

Tridge summary

The Plantation and Commodities Ministry is set to discuss with the Finance Ministry about increasing the oil palm replanting grant to improve productivity among smallholders, as the current replanting rate is significantly below the standard. The government has allocated RM100 million for this program, offering a mix of grants and loans through Agrobank. Minister Datuk Seri Johari Abdul Ghani aims to streamline the grant process to counteract the decline in production from over 20 million tonnes to 18.6 million tonnes. Additionally, the government is incentivizing non-smallholder growers and encouraging large growers to share high-quality seeds with smallholders, with the Malaysian Palm Oil Board overseeing these initiatives to ensure sustained growth in estate production.

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Original content

The Plantation and Commodities Ministry will discuss with the Finance Ministry (MOF) to increase the assistance provided in the oil palm replanting grant to boost productivity among smallholders. Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said the oil palm replanting rate among smallholders is only 0.2 per cent, far below the 4 per cent annual standard. During the question and answer session at the Dewan Rakyat today, he said smallholders also do not implement systematic replanting programmes. He said the government has allocated RM100 million for the replanting programme this year by providing a 50 per cent grant to smallholders while the remaining 50 per cent via Agrobank loans. “In this context, for grant applications, I will discuss with the MOF to increase grant assistance and simplify the process so that smallholders can increase production. “We used to produce more than 20 million tonnes of palm oil, but today our production has declined to 18.6 ...

Source: UkrAgroConsult