RUBBER PRODUCTION INCENTIVE ACTIVATED FOR JANUARY 2024

The Rubber Production Incentive (IPG) for smallholders has been activated for Peninsular Malaysia, Sabah and Sarawak based on the January 2024 production, said the Malaysian Rubber Board (MRB).

In a statement, MRB said the IPG would be activated if the average monthly farmgate price for cup lump rubber is at RM3.00 per kilogramme (kg) or below. 

It said the average price at the farm level for cup lump or scrap rubber in January 2024 was RM2.90 per kg for Peninsular Malaysia, and RM2.55 per kg for Sabah and Sarawak.

“As for IPG for latex, it will be activated when the IPG for cup lump is activated. The rate of IPG latex is fixed at 90 sen per kg for latex with 100% dry rubber content (DRC),” MRB said.

It also said the rate of IPG for cup lump and latex activated in Peninsular Malaysia is 10 sen for 50% DRC and 20 sen per kg for 100% DRC.

Meanwhile, the rate in Sabah is 45 sen per kg for 50% DRC and 90 sen per kg for 100% DRC.

The rate in Sarawak is 45 sen per kg for 50% DRC and 90 sen per kg for 100% DRC.

MRB said smallholders are eligible to receive IPG payments from 1st-29th February, 2024.

The increase of the activation price level is one of the government's initiatives via the Budget 2024 announcement.