Pay subsidy to smallholders, rubber buyers warned
KOTA KINABALU: Rubber buyers will immediately lose their Sabah Rubber Industry Board (LIGS) licenses if they fail to pay the additional or subsidized prices for rubber yields to smallholders, warned Agriculture and Food Industry minister Junz Wong.
Junz said the state is looking at a government policy change that will allow licensed LIGS rubber buyers to pay the subsidies to smallholders in view of the low rubber prices.
"(In the past), LIGS only paid RM0.38 direct to smallholders who deal with them," said Junz when doing a walkabout at the Kota Kinabalu fish market here yesterday.
"Licensed buyers collected 32% of the rubber products in Tenom factory itself. That means 32% of the rubber smallholders didn't get the RM0.38 subsidy which is not fair, and it doesn't fulfill the purpose of us implementing this RM0.38 subsidy to the smallholders," he added.
Junz stressed that licensed buyers must buy the rubber yields and pay the additional prices to smallholders as they would now be able to claim the extra payment from LIGS.
"Do not allow them to delay payment and licensed buyers who did not pay the smallholders immediately, the RM0.38 or RM0.32 depending on the grade 1 or 2, will get their license cancelled immediately. This is a stern warning to them," emphasized Junz.
Previously, Junz said some smallholders had blamed the license holders for pocketing the subsidies.
"The truth is that the policy did not allow LIGS to pay (the subsidies to) them (licensed buyers). So I feel we will change in terms of policy," he said.
"But this is a stern warning to them also. They must pay the smallholders on-the-spot when they collect it. When they collect from rubber tappers, they must pay.
"If they are caught, they didn't pay, their license will be cancelled immediately," reiterated Junz.
The additional or subsidy prices per kilogram are RM0.60 for latex, whilst rubber sheets (USS) are set at RM0.38 for grade 1 and RM0.32 for grade 2, and rubber cuplumps at RM0.36 for grade 1 and RM0.30 for grade 2.