KENINGAU: Sabah Deputy Chief Minister Datuk Seri Dr Jeffrey Kitingan said the government is considering raising the floor price of scrap rubber in Sabah to RM3.50, from the present RM2.50 per kg.
Kitingan, who is also the state Agriculture and Fisheries Minister, said the present price was set seven years ago, and given the challenging time now, it was unfair to the smallholders.
"Times have changed and there is reason to raise the floor price now.
"We must ensure that our smallholders can make a living, particularly during this time when prices of goods including food, have increased dramatically," he said.
Kitingan said this after attending a dialogue between the Sabah Rubber Industry Board (LIGS) and members of the Association of Rubber Smallholders Keningau here.
To improve the smallholders' income, Kitingan said LIGS also proposed growing other crops such as pineapple, rearing livestock such as chicken and exploring opportunities in the stingless honey bees industry.
The smallholders also requested for an increase in their subsidies.
"My ministry will address the matter with both the Sabah and federal governments so that we can make a more comprehensive decision.
"I would like to reassure the smallholders that the ministry is aware and sympathetic to their situation.
"I am pleased with this dialogue because without it, we would only be talking to the wind with no opportunity to adequately discuss our problems and obstacles," he said.
Kitingan also explained that the price of rubber is set by the market and not by his ministry or LIGS, and its ups and downs were determined by the demand for the commodity in the global market.
Furthermore, he said the prices of supplies such as pesticides and fertilisers were under the control of the federal Domestic Trade and Consumer Affairs MInistry and not his ministry or LIGS.
"It is critical that these factors are understood so that no one blames the wrong party or thinks the ministry has unlimited authority to raise or lower prices at will.
"If it were up to us, we would certainly control the price accordingly so that our people can have better income.
"But the truth is that all prices are market-driven. I wish we could do more.
"Unfortunately, we can only help so much such as through subsidies, monetary aid, and technical assistance.
"That is our responsibility and we will continue to provide these services," he said.