Cotton industry players hold dialogue

Tamale, Jan 25, GNA - Cotton farmers in the country have been accused of diverting inputs, such as fertilizer and chemicals, provided them by cotton companies to help them increase production. Mr. Hamadeh Ramez, Managing Director of Intercontinental Farmer Limited, (INCOF), who made the allegations, also said the farmers were defaulting in the repayment of loans they took from the companies to boost yield.

Mr Ramez was speaking at a dialogue meeting of stakeholders in the cotton industry. It was organised by the Cotton Growers Association with support from the BUSAC Fund in Tamale on Friday. "Some of the farmers collect the fertilizer and instantly sell it out or use it on their maize farms while others collect the loans and refuse to pay back," he said.

He said this attitude of the farmers had run down many cotton companies which were now saddled with bank debts, citing his company which, he said, had disbursed over GH=A214 million as loan to cotton farmers in the East Mamprusi District but retrieved only GH=A2400,000. He said when the his company started operations in the North, they used to load about 18 articulator trucks of cotton annually, but for this year, they had only one articulator load. "The government on its part has done well and we in turn have to take a business approach to the cotton industry by putting in place mechanisms for retrieving loans we give to the farmers," Mr. Ramez added.

Mr Mohammed Adam Nashiru, Secretary of the Cotton Growers Association of Ghana, said the closure of some cotton companies was a big blow to farmers who depended on the crop for the livelihood. He said the difficulties facing the cotton sub sector had led to a reduction of farmer population by 30 percent in the three northern regions and that workers of some cotton companies had also been laid off.

Mr Nashiru said in view of the problems facing the cotton industry, the farmers were urgently appealing to government to reduce the importation of textile material by 50 percent to encourage the use of locally produced materials.

He also urged government to implement the President's Special Initiative on cotton in the three northern regions and ensure "timely and meaningful credit" to the sector. Mr. Nashiru further called for the establishment of a board to market cotton produced in the country and the establishment of a Cotton Seed Unit with the support of the Savannah Research Institute (SARI) to come out with high quality cotton seed. Mr Mohammed Doku, Chief Executive of the Centre for the Empowerment of the Vulnerable (CEV), said the decision of government to lift tariffs on imported lint cotton since 2006 was one that dealt a final blow to the industry, throwing it out of business. He called for the improvement of extension services and support to farmers in improving quality and per hectare yield as well as creating investor motivation and friendly policies to attract private investment into the industry. 25 Jan. 08