03/08/2010 (Bernama), Miri - The government is considering a RM20 million allocation under the 10th Malaysia Plan to help oil palm smallholders.
Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said the Malaysian Palm Oil Board had sought the fund for the purpose of oil palm cultivation, replantation exercise and rehabilitation of oil palm holdings.
"The smallholder sector presently accounts for about 40 per cent of the total oil palm areas and over 28 per cent of national palm oil production," he said when opening the National Conference of Smallholders here Tuesday.
He said smallholders also played a role in realising Vision 35:25 which envisages an FFB yield of 35 tonnes per hectare per annum and an oil extraction rate of 25 per cent by 2020.
He also said more than 7,000 smallholders who merge to form 10 clusters nationwide had been identified as pioneers for the setting up of the Sustainable Palm Oil Cluster (SPOC).
The SPOC concept would also involve the establishment of a cooperative to take care of the interests of smallholders and later become an institution that handles certification to meet the Roundtable on Sustainable Palm Oil (RSPO) requirements.
Dompok said the government had allocated RM50 million for this certification and the involvement of smallholders would complete the entire chain of the country's palm industry in producing products recognised by RSPO.
"Smallholders' participation alongside the plantation sector in a move toward sustainable palm production will bring about increased productivity and income through higher prices," he said.
- DATE 04/08/2010
- NEWS PROVIDER Kamar Nor Aini Bt Kamarul Zaman
- NEWS SOURCE Bernama
- HEADLINE Government Considering RM20 Million Allocation For Oil Palm Smallholders