Can Raub durian farmers truly profit at RM30/kg Musang King?

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Raub Durian Farmers Can Achieve Profitability with RM30/kg Musang King Sales Under Legalisation Scheme

Royal Pahang Durian Resources PKPP Sdn Bhd (RPDR-PKPP) asserts that durian farmers in Raub, Pahang, can indeed achieve profitability when selling Musang King Grade A durians at the proposed fixed rate of RM30 per kilogram. This assertion is made within the context of a legalisation scheme for land allegedly used illegally by durian farmers, wherein the Pahang state government leases land to RPDR-PKPP, which then subleases it to farmers who are obligated to sell their produce at a predetermined price.
Proposed Pricing and Revenue Projections

RPDR-PKPP maintains that the proposed price of RM30 per kilogram for Grade A Musang King durian is fair for the 2021 and 2022 harvest seasons. The company projects that a farmer cultivating 10 acres, with a minimum yield of 2,000 kg of Grade A Musang King per acre, could generate a gross revenue of RM600,000. Considering an estimated production cost of RM8 per kilogram, this pricing structure is expected to yield a profit margin exceeding 200% for the farmers.
Levy Structure and Potential Farmer Contribution

A levy is imposed on durians sold to Royal Pahang Durian Export Sdn Bhd, with the trading company responsible for paying a legalisation levy to RPDR-PKPP. This levy is set at RM10 per kilogram for the first 2,000 kilograms of durians produced per acre. While this equates to a maximum potential ceiling of RM20,000 per acre payable to RPDR-PKPP, the company clarifies that farmers could potentially pay less. If farmers produce fewer than 2,000 kilograms per acre, the levy amount received by RPDR-PKPP would be correspondingly lower.
RPDR-PKPP's Responsibilities and Farmer Registration

Beyond facilitating the sale of durians, RPDR-PKPP's duties under the scheme include ensuring farmers adhere to environmental protection regulations and comply with Malaysian Good Agricultural Practices (MyGAP) requirements. Approximately 300 farmers have registered with RPDR-PKPP to date, with 133 having made partial payments of the earnest money required under the scheme.
Objections and Legal Challenges

Despite RPDR-PKPP's claims of profitability, durian farmers organised under the Save Musang King Alliance (Samka) group have voiced strong objections to the contract terms, labelling them as exploitative and akin to "modern slavery." In response to the legalisation scheme and associated land lease and eviction orders, 111 durian farmers have initiated a judicial review against the Pahang government, PKPP, and RPDR-PKPP. The High Court has since ordered the Pahang government to suspend enforcement and eviction measures against these farmers pending the outcome of the legal proceedings.

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Can Raub durian farmers truly profit at RM30/kg Musang King?

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