The company at the centre of the durian farm legalisation scheme proposal in Raub, Royal Pahang Durian Resources-PKPP Sdn Bhd (RPDR-PKPP), has dismissed claims that none of the farmers are backing the scheme.
In a statement yesterday, it said that at least 300 farmers had engaged with the company.
"The management of RPDR-PKPP wishes to set the record straight on many untruths and/or claims related to its legalisation scheme proposal," it said.
"To date, a total of about 300 farmers have registered with RPDR-PKPP of which 133 have confirmed and partially paid earnest money of RM1,000 per acre (up to RM10,000 per applicant for those who exceed 10 acres of land).
"The balance of the earnest money (based on final licensed surveyor's results) need only to be paid after signing of the definitive agreement with RPDR-PKPP," it said.
RPDR-PKPP added that the Pahang state government had mandated the requirement for earnest money.
It also questioned financial numbers highlighted by protestors as a sign that the company is in a weak position, saying that they were actually related to Royal Pahang Durian Produce Sdn Bhd (RPDP), which is the owner of a 1,000-acre durian farm in Tras, Raub, Pahang.
"The liabilities shown are the amount owing to shareholders. Shareholders have injected their own money into the farm through the company as a loan.
"The gestation period is six years. Hence, there's no sales and income as yet, and RPDP expects first fruiting in 2022," it said.
The company also pointed to the fact that the Ministry of Finance had granted RPDP a 10-year tax exemption status in 2019.
On claims that farmers were required to pay a levy of RM6,000 per acre annually, RPDR-PKPP said it was a one-off payment only applicable for this year to farms with mature durian trees at 30 trees per acre.
"In return, farmers are allowed to sell all their durians in the open market till May 31 next year.
The legalisation scheme is set to take effect on June 1, 2021, when farmers will have to start selling their fruits to Royal Pahang Durian Export Sdn Bhd.
"To help ease the farmers' burden, PDRP-PKPP has agreed to divide the payment into three instalments which will be paid this month, December and March next year," read the statement.
The company also denied that the levy amounting to RM20,000 per acre was exorbitant, saying it was the maximum ceiling amount that RPDR-PKPP will receive.
"This RM20,000 per acre is based on our calculation (RM10 per kg x 2,000kg). There is no penalty if farmers do not meet the tonnage targets as per the term sheet.
"For example, if farmers can only produce 1,000kg or less per-acre, RPDR-PKPP may potentially receive as low as RM10,000 per acre or less.
"Being the legalisation scheme company, RPDR-PKPP has been entrusted with ensuring farmers do not commit further encroachments, prevent further degradation of the environment and comply with Malaysian Good Agricultural Practice requirements for certifications," it said.
The company also said that its proposed price of RM30 per kg for Grade A Musang King was fair. It shared calculations that if a farmer owns 10-acres of land, the minimum gross revenue based on 2,000 kg per acre for grade A Musang King was expected to reach RM600,000, or RM300 per kg.
Pahang MB: No eviction yet but no compromise
Yesterday, the Pahang government said it would not enforce an eviction order against a group of durian farmers in Raub until the disposal of their suit.
However, Pahang Menteri Besar Wan Rosdy Wan Ismail warned that he does not intend to compromise with the farmers because they are occupying land illegally.
"I wish to stress that the government does not intend to oppress the farmers. Instead, the government is acting in accordance with the law.
"The farmers should be citizens who adhere to the law and vacate state land which they have been illegally occupying," said Wan Rosdy in a statement today.
The Kuantan High Court will hear the farmers' judicial review application against the Raub District and Land Office's eviction order on Oct 28.
A group of durian farmers is fighting eviction orders despite not having legal rights to the land.
The state government has decided to lease a 5,357 acres (2,168 ha) of land to a joint venture between state statutory body Perbadanan Kemajuan Pertanian Negeri Pahang (PKPP) and the royalty-linked private firm Royal Pahang Durian Resources (RPDR).
PKPP-RPDR had offered to sublease the land to the farmers, who in turn claimed that the terms were exploitative.
Some farmers are also claiming that they have rights to the land under the Security Relocation Scheme (RPSK) implemented by the state government in the 1970s. - Mkini
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