KUALA LUMPUR: The increase in the Rubber Production Incentive (IPG) to RM3.30 per kilogramme (kg) in the tabling of 2027 Budget is expected to help cover part of production costs and provide additional income support for smallholders.
The National Association of Small Farmers of Malaysia (PKPKM) president, Adzmi Hassan, said this is especially due to smallholders facing uncertainty in market prices and rising costs of agricultural inputs.
"The IPG rate hike is a positive step that reflects the Madani government's concern for the welfare of small rubber farmers, especially in the face of rising costs at the moment," he said in a statement today.
He said IPG is not just financial aid but an important instrument to ensure rubber tapping activities remain viable and smallholders have the incentive to keep their plantations in production.
