PUTRAJAYA: The Malaysian Rubber Board (LGM) will be setting the daily reference price for rubber.

The new mechanism, said Plantations Industries and Commodities Minister Datuk Seri Douglas Uggah Embas, was approved by the Cabinet on June 13.

He said this mechanism would benefit the Malaysian rubber tappers aside from increasing their profit of rubber sold and eliminate tiers of dealers as the operators would be dealing directly with the cooperatives.

It was learnt that the rubber cooperatives would be purchasing the produces from farmers directly and it would then be sold to processors.

The farmers stand to earn approximately RM0.20 to RM0.30 cents more per kilogram of rubber sold under this new mechanism that would be implemented soon.

-NST