KUDAT: As of last February, 69 Sustainable Oil Palm Growers Cooperatives (KPSM) have been established throughout the country, said Deputy Minister of Plantation Industries and Commodities, Datuk Seri Dr Wee Jeck Seng.
“Of this total, 24 KPSM (smallholders) are in the peninsula, 27 in Sabah and 18 in Sarawak.
“So far, 61 KPSM smallholders have implemented the sale of fresh fruit bunches (FFB/BTS) directly to the factories with a total of 314,834.15 tonnes,” he said when officiating at Sikuati Berhad’s KPSM weighbridge centre, near here, Tuesday.
KPSM Sikuati Berhad, which was established on Sept 8, 2021, gives direct benefits to 41 smallholders who have registered with it as members.
Wee said the Government had also introduced an interest-free Soft Loan Scheme for selected KPSM smallholders with an allocation of RM200,000 for each KPSM to increase its capacity, especially for cash payments of FFB supplied by smallholders and until last February, 16 KPSM have enjoyed this facility.
“The Machinery Purchase Scheme for KPSM is also provided in the form of a matching grant with a (total) allocation of RM20 million to help each KPSM purchase its own machinery for smooth operations,” he added.
Wee said KPSM was established in 2010 under the Malaysian Cooperatives Commission (SKM) Act and various assistance and support had been channelled to increase cooperative activities and contribute to the development of oil palm smallholders.
“KPSM was established as a strategic move through the Ministry of Plantation Industries and Commodities to intensify the involvement of smallholders in the new economic model through cooperatives as well as small and medium industries,” he said.
Meanwhile, he said the Government was also committed to helping smallholders obtain the Malaysian Sustainable Palm Oil (MSPO) certification for sustainable palm oil production and increased FFB productivity.
“The Government provides assistance to smallholders in the form of MSPO certification fees, MSPO-related training and provision of personal safety protective equipment (PPE).
“As of last February, the private oil palm smallholdings which have been MSPO-certified totalled 580,084.25 hectares and involving 156,033 smallholders,” he added.
