PUTRAJAYA has approved an interest-free easy loan scheme of RM100,000 for Sustainable Oil Palm Growers Cooperatives to provide them with working capital to buy and sell fresh fruit bunches said Primary Industries Minister Teresa Kok.

She said for starters, 10 such cooperatives had been selected to receive the loan based on their excellent operational and administrative performance.

“If each repayment goes smoothly, the ministry intends to extend the scheme to other cooperatives that demonstrate excellent operational and administrative performance. This will help boost their working capital and business capability.

“Besides the government, cooperatives can also receive financial aid from the Cooperatives Commission of Malaysia.

“Therefore, interested cooperatives can obtain information of available financing being offered through nearby commission offices or by contacting the Malaysian Palm Oil Board in the state,” she said at the launch of the Kota Marudu cooperatives weighing centre today.

To help in the country’s palm oil industry development, the government has implemented various programmes to raise the productivity and income of smallholders, Kok said.

“In this regard, the government has taken the initiative to encourage cooperatives to bring together smallholders under one registered organisation in order to safeguard common interests, especially in raising farm productivity and their socioeconomic status. 

“Among the cooperatives’ main activities are the sale and purchase of fresh fruit bunches supplied by smallholders at the weighing centres. They also provide agricultural inputs as well as harvesting and farm management services to the smallholders. 

“The profits from the business will be returned to cooperative members through dividends and rebates in line with the government’s objective of enhancing smallholders’ productivity and income,” she added. – Bernama, February 24, 2020.