LOW RUBBERWOOD SELLING PRICES IN FELDA

THERE ARE FEELING SAD when reading a report from NSTP how 'Felda settlers cry foul over low rubberwood selling prices' in September 2023. A report from Padang Terap, Kedah stated that Felda Lubuk Merbau settlers here are unhappy with rubberwood purchase offers by the Felda management in which they claim is set an unreasonably low rate. According to Felda Lubuk Merbau Ladang Lestari project development secretary Mohd Aman Ghazali that the prices offered by Felda for the trees to be cut down to make way for replanting projects is far too low when compared to the actual prices offered by other rubberwood factories (See picture above). He explained that Felda has only offered to buy rubberwood at a price of RM4,500 per hectare, while the real value of the tree's wood are estimated to be around RM11,000 per hectare. The RM11,000 per hectare figure is not a mere estimation, as we have brought in several other parties to assess it. If we can obtain that price, each settler can gain over RM30,000, as each of them owns 3.2 hectares of land. Reported that if the settlers agree to Felda's offered price, the amount we would receive would be approximately RM14,000 only and this amount is further expected to be deducted due to settlers' existing debts as they told reporters here today. This article in "Anim Agriculture Technology" I will share the reports regarding the low rubberwood selling porces in Felda as references.

Reported that due to the significant price difference one settlers known as Mohd Aman and over 200 settlers are hoping to be given the option to manage the logging activities themselves and sell the wood to any party willing to offer a fair price. When we carried out the logging and replanting process for the first time in (the year) 2000 the practices of this was allowed but now, they seem to have no way out and are told that we must sell rubberwood to Felda. They have no issue selling to Felda but the prices have to be fair and in line with current values. Currently in which most settlers still have debts amounting to tens of thousands of ringgit with Felda, and if the trees can be sold at their true value, settlers can certainly free themselves from the burden of debt. He added that such an offer is highly unreasonable when the cost for the replanting imposed by Felda is very high and it was ranging from RM85,000 to RM90,000. Meanwhile, if they hire other contractors to do the job then the cost is estimated to be around RM30,000 only but Felda imposes charges value of amounting RM85,000 to RM90,000. For this reason the settlers sincerely hope that the issue of wood prices is given attention. Give us the freedom to make decisions. It is understood that some of the more than 400 settlers have agreed to accept the price offered by Felda, while others are still demanding for a higher price. Meanwhile for another settler knwn as Mohd Suhaimi Omar, stressed that the settlers seem to have no choice but to sell the felled tree wood to other parties. Whether they like it or not, it is said that we must accept this price as well. If we don't accept it, it is understood that settlers will not be offered livelihood loans and other facilities in the future, including fertiliser. Source: NSTP.

Thanks...

By,

M Anem,

Senior Agronomist,

Putrajaya,

Malaysia.

(October 2023).