When it comes to payday, most smallholder oil palm growers spend all or most of their income on store food and other essential items. While all growers have 1-2 savings accounts, they hardly save any money in these accounts. To them, savings is not a priority, and they said the fortnightly income is just enough to cater for their basic needs before the next payday. Operating from a simple budget is something that is not common amongst smallholders. Most of them are financially illiterate and do not know how to spend wisely.
Therefore the “Financial Literacy Trainings” (FTL) currently facilitated by the Mama Lus Frut Group Executives helps educate the smallholders on how to derive austere farm budgets so that they do not spend all their income but have some free cash to save. From their savings, they can diversify into other income-generating projects to support them. That is the way forward for our smallholder growers.
On Friday 26th March, the Head of SSR attended the graduation for 66 youths from Galai 1 who completed a two-day Financial Literacy Training (FTL). Other guests included OPIC Hoskins Project Manager, Buvussi Divisional Manager, Smallholder Affairs Representative, Ward Development Committee (WDC) for Galai 1, the Head Teacher of Galai Primary School and the Mama Lus Frut Group Executives.
After the speeches from the guests, The participants presented with their certificates. The WDC, in his remarks, said this was the first of its kind and thanked Mama Lus Frut Group Executives for facilitating this training in his ward. He added that the movement is a step in the right direction for many smallholders who do not know how to manage their oil palm income as they lack financial management capacity. Smallholders are encouraged to adopt the saving culture to diversify into other businesses apart from oil palm to improve the block’s general living standards.
Amongst the graduands, fifty-seven were beneficiaries, five primary cardholders, three mama cardholders and one C-card holder.
