KOTA KINABALU: The Sabah Rubber Industry Board (SRIB) has refuted allegations and accusations made by Chua Men Nam of United Sabah Smallholders Association that the rubber prices in Sabah are the lowest in Malaysia.
SRIB general manager Datuk Harris Mathews stressed that rubber prices in Sabah were in fact higher than in Peninsula Malaysia even after taking into account the logistical distance of 1,300 km from Kota Kinabalu to Port Klang or Singapore, where the rubber needed to be transshipped to importing countries.
Harris in a statement yesterday said as a comparison, the average price of latex in Sabah and Peninsula Malaysia as of March 25 was RM7.80 per kilogram and RM7.50 respectively.
He added that the prices of cuplumps in Sabah was RM3.60 per kilogram (low) and RM4.03 per kilogram (high) compared to RM3.10 (low) and RM3.90 (high) in Peninsular Malaysia.
“The lowest price for cuplumps in Sabah is higher than Peninsula’s by 50 sen/kg while for the highest price, the price in Sabah is higher by 13 sen/kg,” he pointed out and stressed that SRIB would continue to pay fair prices for rubber purchased from smallholders taking into consideration the condition and quality of the raw rubber.
“It is an undeniable fact that the cost of purchasing, processing and marketing of rubber in Sabah are higher than in Peninsula Malaysia due to additional shipping costs and comparatively poor infrastructure in the state.
“The state government recognizes these shortcomings and in an effort to assist the state rubber smallholders and to reduce the price differences between Sabah and Peninsula Malaysia, it has initiated a programme known as the Rubber Production Incentive Scheme amounting to RM30 million since August 2012,” Harris added.
This, according to him was to ensure that rubber prices in Sabah are similar to that in Peninsula Malaysia.
SRIB, he said had also since 2011 encouraged smallholders to produce cuplumps instead of unsmoked sheets (USS) to avoid variation in dry rubber content, and disclosed that currently 60 per cent of all raw rubber produced by smallholders was in the form of cuplumps.
The aim is to achieve 90 per cent production in cuplumps.
On the issue of raw rubber cess raised by Chua, SRIB clarified that the raw rubber cess imposed in Sabah was a preventive cess which did not have any effect on the rubber prices paid by SRIB to the smallholders.
“The imposition of cess is to ensure that all raw rubber produced in the state is processed in Sabah. This will ensure sufficient raw materials to the three local rubber processing factories which employ almost 300 local workers,” Harris said.
“By asking for the raw rubber cess to be removed, it shows that Chua is not supporting the local manufacturing industries. Instead Chua wants the raw rubber to be sent to Peninsula Malaysia factories for processing for the benefit of two or three ‘towkays’ and to the detriment of the local rubber factories,” he opined.
Harris also said the state state government did not ban raw rubber being taken out of the state as long as the cess was paid.
“The reason being that smallholders are given assistance by the government amounting to RM14,000 per hectare to cover the costs for land clearing, planting and maintenance for five years which include fertilizers, chemicals and construction of agricultural roads.
“SRIB provides free management of the areas developed by the Board till maturity. In addition, SRIB provides free training to smallholders, provides free latex cups, spouts, hangers, tapping knives and maintain the agricultural roads as its corporate responsibility.
“It is untenable for the so called rubber dealers or ‘towkays who have not put in any effort and finance in developing the rubber industry to take the yield and make profit out of the efforts of SRIB. One has to wonder whose interest Chua is trying to protect. Even the production figures of 75,000 tonnes Chua had quoted are off the mark,” he said.
Harris is of the opinion that Chua is making false allegations with the intention to incite smallholders to go against the state government and SRIB for intentions for which he only knows.
“During the past two years, the United Sabah Smallholders Association had never approached or met with the new management of SRIB to discuss or seek clarification on any issues relating to rubber smallholders. In fact, the Sabah Bumiputera Rubber Smallholders Association lead by Modily Bangali is the only association that has met and discussed with SRIB. The issue raised were explained and clarified to them.
“If Chua is really sincere and genuine, he should come and meet with the management of SRIB to clarify the issues instead of making press statement with ill intentions and agenda to damage the rubber industry,” he stressed.
SRIB reiterated that the rubber smallholders’ interest would continue to be its primary focus, Harris said, adding that SRIB would ensure that the rubber smallholders’ welfare, interest and well-being were looked after.
“It is SRIB’s intention for rubber smallholders to be high income earners in the rural economy. In 2012, the average earnings of settlers in Tenom, Pitas and Keningau were respectively RM 1,797 per month, RM1,150 per month and RM 3,770 per month,” he said.
“The state government through SRIB has eradicated poverty among the settlers and significantly reduced the poverty rate among rubber smallholders,” he added.
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