RM10.5 Million For Tobacco Growers

Source from:  PUTRAJAYA, (Bernama) 03/21/2005

The government Thursday announced a RM10.5 million allocation to help tobacco growers, especially in Kelantan, Terengganu, Kedah and Perlis, who are facing a decline in income. Deputy Prime Minister Datuk Seri Najib Tun Razak said the allocation would be utilised for integrated farming programmes, under which the growers would be encouraged to diversify their farming activities. "They will plant tobacco on part of the land and plant other crops, like maize and padi in the remaining areas," he said. According to Najib 70 per cent of the allocation would be given out in the form of interest-free loans while 30 per cent given out as grants. Najib was speaking to reporters after chairing the Cabinet Committee on Ways to Raise the Incomes of Small Farmers of the Industrial Commodity here today. He admitted that the incomes of the tobacco growers had been adversely affected by the government's move in raising the tax on cigarettes to cut down smoking. The growers were also adversely affected by the liberalisation policy introduced under the Asean Free Trade Area (AFTA) agreement. He said about 100,000 people in this country were depending on the tobacco industry for their livelihood. Thursday's meeting also approved the implementation of a programme to increase the incomes of the small farmers who planted pepper in Sarawak through a RM84.5 million allocation for a five-year period. Their incomes are affected due to the decline in the pepper price in the market, while the plants are infected with diseases. "The farmers will be asked to plant pepper of better quality so that it can provide them with higher incomes," he said. There are more than 67,000 families of farmers who plant pepper in Sarawak, which contributes 98 per cent of the country's pepper production. Najib said the committee also agreed to extend the qualification for grants under the replanting scheme from rubber to pepper to five hectares or less, compared to 2.5 hectares or less prior to this. With the decision 245,687 of the 249,428 small farmers are expected to qualify for a grant of RM4,448 for each hectare. It will cost the government RM89 million. Najib said the move was in line with the government's commitment to eradicate poverty. Enditem