Kuala Lampur:The National Association of Smallholders Malaysia (NASH) is urging the government to bolster replanting programs, enhance productivity, and improve financing access for the palm oil and rubber sectors in the upcoming Budget 2027.
According to BERNAMA News Agency, NASH President Adzmi Hassan has proposed an increase in the oil palm replanting assistance rate to RM18,200 per hectare, representing a 30% increase. This proposal includes a simplified payment mechanism to alleviate initial cash-flow challenges faced by smallholders.
Adzmi highlighted that current replanting costs range from RM17,000 to RM17,200 per hectare, while the existing assistance scheme offers RM14,000 per hectare in Peninsular Malaysia. He noted that the annual replanting rate of about 2% falls short of the 4% target, emphasizing the need to view replanting as an investment in the country's future production capacity.
NASH also suggests the creation of a national smallholders development fund (TPPKN) to serve as a long-term development resource. The fund could include revolving capital, a matching grant approach, a savings mechanism during periods of high commodity prices, and financing for improvements in productivity, technology, infrastructure, and high-value crops.
A significant aspect of TPPKN is the establishment of a smallholders' land bank, allowing for the voluntary consolidation and professional management of underutilized land without altering ownership rights. This initiative is intended to attract younger generations to agriculture through a structured approach, connecting landowners, young individuals, graduates, investors, and agricultural operators.
For the rubber sector, NASH proposes a pricing mechanism, 'harga getah bermaruah,' which takes into account the actual production costs for smallholders. They suggest a floor price of RM4.50 per kilogram, based on an estimated production cost of RM3.65 per kilogram.
Adzmi also calls for an assessment of trade policy and the rubber value chain to ensure smallholders receive a fairer share of generated value. He stresses the importance of practical access to productivity-enhancing inputs like ethephon, ensuring regulation does not impede productivity efforts.
NASH advocates for more inclusive government assistance programs, such as BUDI Agrikomoditi, by reviewing or removing the 0.5-hectare minimum landholding requirement. Furthermore, the association urges the expedited implementation of the National Fertiliser Act to regulate fertiliser content, quality, and safety, emphasizing its importance due to the significant production costs associated with fertiliser.
Prime Minister Datuk Seri Anwar Ibrahim, also the Finance Minister, is expected to present Budget 2027 on October 9.