Company explains issues related to durian deal at Raub



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KUANTAN: Royal Pahang Durian Resources PKPP Sdn Bhd (RPDR-PKPP) has given its version of the facts on the issues raised in relation to its handling of the land legalization plan involving the durian farms in Raub.

Company management said that to date a total of 300 farmers had registered with them, of which 133 had confirmed and partially paid a guarantee of RM1,000 per 0.4ha and up to RM10,000 per applicant for those who they exceeded 4ha of land. .

“The balance of the earnest money (based on the final results of the authorized surveyor) should only be paid after signing the final agreement with RPDR-PKPP. The earnest requirement is a mandate from the Pahang government,” the company said in a statement. . .

RPDR-PKPP also said that the collection of RM20,000 per 0.4ha was not exorbitant, and said this was the maximum amount the company would receive.

“This amount is paid for by Royal Pahang Durian Export Sdn Bhd, the trading company. There is no penalty if farmers do not meet tonnage targets.

“For example, if farmers only produce 1,000 kg or less per 0.4 ha, RPDR-PKPP could receive as little as RM 10,000 per 0.4ha or less,” the company said.

The company said this was for fixed annual operating costs, including office management, paying its 150+ staff, site monitoring for environmental protection, satellite monitoring to curb further invasion, the MyGAP application and its cost of maintenance, payment of the lease, evaluation and abandonment. rent, to name a few.

Regarding the annual rent of RM6,000 per 0.4ha as claimed by Save Musang King Alliance (Samka), RPDR-PKPP reiterated that this was a one-time lump sum payment for 2020 only.

“This only applies to mature durian fruit trees estimated at 30 trees per 0.4 ha. In exchange, farmers can sell all their durian directly on the open market throughout 2020 and until May 31, 2021 .

“The obligation to sell durians to Royal Pahang Durian Export Sdn Bhd will come into effect only on June 1, 2021, when the legalization scheme begins.

“To further satisfy farmers’ request for financial assistance, RPDR-PKPP has agreed to split the payment into three equal installments payable respectively in September 2020, December 2020 and March 2021,” the company said.

RPDR-PKPP also said that its proposed price of RM30 per kg for grade A Musang King was fair.

He said that a farmer with 4ha of land would have a minimum gross income (based on 2,000 kg of grade A durians per 0.4ha) of 600,000 ringgit.

“Based on independent verification, the production cost (of around RM8 per kg) will ensure farmers an expected margin of more than 200%,” the company said.

On claims that the company was financially weak, RPDR-PKPP said the figures the protesters highlighted were actually related to Royal Pahang Durian Produce Sdn Bhd (RPDP), the owner of a 404 ha durian farm in Tras, Raub.

“The liabilities shown are the amount owed to the shareholders who injected their own money into the farm through the company as a loan.

“The gestation period is six years, therefore there is no sales or revenue at the moment. RPDP expects the first fruition in 2022 and the shareholders’ investment reflects RPDP’s financial strength.

“Furthermore, RPDP has been granted 10-year tax-exempt status from the Ministry of Finance in 2019,” said RPDR-PKPP.

The company said it would remain open to discussions with farmers who had not yet signed up for the legalization scheme and urged them to come forward.



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