KUALA LUMPUR: The Malaysian Palm Oil Board (MPOB) will implement a RM100mil palm oil replanting incentive scheme beginning Oct 1, 2015.
Plantation Industries and Commodities Minister Datuk Seri Douglas Amar Uggah Embas said the scheme targeted the replanting of 83,000 ha of unproductive and old palms.
“This scheme is open from Oct 1, 2015 until Dec 31, 2015 for approved applicants to fell unproductive and old palms,” he said in a statement issued by the ministry.
The statement added that the approval for the scheme was based on first-come-first-serve basis with an incentive allocation of RM1,500 per ha for an approved area of 33,000 ha in the first phase.
Meanwhile, an incentive of RM1,000 per ha would be allocated for an approved area of 50,000 ha under phase two.
Uggah said the implementation of the replanting incentive scheme would contribute to a reduction of crude palm oil production by 250,000 tonnes and subsequently to a decline in stocks as well as help stabilise palm oil prices.
Applicants for the incentive scheme are encouraged to submit their applications online through www.mpob.gov.my effective Oct 1, 2015.
Meanwhile, speaking at a press conference in Kuching after meeting Sarawak Deputy Chief Minister Datuk Patinggi Tan Sri Alfred Jabu, Uggah said the decline in crude palm oil prices since August had affected the income of some 300,000 smallholders throughout the country.
He said the lowest price of RM1,802 per tonne was recorded on Aug 7 but it gradually improved to RM2,120 per tonne as of yesterday. — Bernama