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KUALA TERENGGANU, March 28 (Bernama) — Terengganu government has identified three locations in the state to build kenaf-processing factories worth RM40 million.
State Agriculture and Agro-based Industry Committee chairman Rozi Mamat said the factories were expected to be built this year in Mercang (Marang), Saujana (Setiu) and Gong Medan (Besut), in collaboration with several foreign investors.
“The factory in Marang costs RM24 million, Setiu (RM4 million) and Besut (RM12 million). These factories will process the crop into various products including animal feed,” he told reporters here Sunday.
Rozi said the kenaf cultivation industry was expected to get a boost from the completion of the factories.
“Right now, we want to encourage former tobacco farmers to venture into kenaf cultivation because most tobacco companies are reducing their tobacco production quota annually,” he said.
Rozi said the state government had also allocated RM8 million as kenaf cultivation aid with a target of having 500ha of kenaf plantations this year.
“The current price of kenaf has also inc reased to RM500 per tonne compared with RM350 previously,” he said.
He also said that the state government had allocated RM12 million to assist former tobacco farmers to venture into cash crop farming.
Earlier, Rozi presented compassionate aid to 121 tobacco farmers in Terengganu to ease their burden in the wake of the economic downturn.
— BERNAMA
