RM200 Million Scheme To Help Oil Palm Growers Replant Ageing Trees - Noraini

BATU PAHAT, Oct 10 (Bernama) – The RM200 million Oil Palm Replanting Financing Programme (PTSS) announced under Budget 2027 is expected to help more oil palm growers replant ageing trees with higher-yielding ones while easing their financial burden.

Plantations and Commodities Minister Datuk Seri Dr Noraini Ahmad said replanting involves high costs, with growers having to wait several years before newly planted trees begin producing yields.

Under the PTSS, borrowers will enjoy a four-year repayment deferment and pay an interest rate of two per cent, with the government covering the balance.

“We want more ageing trees to be replaced so that plantation yields can increase when the new trees start producing. In the long term, this will help growers earn better incomes,” she told reporters after an event at Dewan Peladang Sri Medan here today.

Noraini said the PTSS complements the RM100 million Oil Palm Smallholder Replanting Programme (TSPKS 2.0), which benefits about 4,500 smallholders through a financing package comprising 50 per cent grant and 50 per cent loan.

TSPKS 2.0 is open to independent smallholders with plantations of 10 hectares or less, while the PTSS targets individuals and companies with holdings exceeding 10 hectares up to 40.46 hectares, through full loan financing.

However, she said the PTSS had yet to be officially launched, with further implementation details to be announced later.

Noraini, who is also Parit Sulong MP, said Budget 2027 had doubled the allocation for plantation road repairs to RM100 million from RM50 million to improve plantation management and facilitate the transport of produce to market.

For the rubber sector, the rubber production incentive (IPG) has been increased from RM3 to RM3.30 per kilogramme, benefiting more than 300,000 smallholders amid market price uncertainties.

Another RM30 million has been allocated to control crop diseases and pests affecting commodities including oil palm, cocoa and pepper, while more than RM40 million will support the development of high-value products using modern technology, including premium chocolate and gaharu oil extracts for aromatherapy.

She said RM15 million from palm oil industry cess collections would be channelled towards environmental conservation, including wildlife habitat protection.

At the event, the Sri Medan Area Farmers’ Organisation (PPK) distributed RM114,502.85 in business zakat, RM52,360 in management grants to 38 Farmers’ Units and RM8,950 in academic awards to 57 outstanding students within its area.

– BERNAMA