WANTED! Investors for Ghana’s cotton industry

The Cotton Growers Association of Ghana has appealed to government to take steps to save the cotton industry from collapse.

According to the group, current happenings within the cotton industry if not immediately dealt with would cause the demise of the industry which is currently on a ‘life support system’.

The local cotton industry has however been identified as a crucial element in government’s desire to save the local textile industry from extinction.

National Chairman of the association, Abdul Rahman Mohammed who made this appeal at a workshop organised by the General Agricultural Workers Union(GAWU) and Actionaid in Accra recently said the main problem facing cotton production is unreliable funding for farmers’ activities.

He also called on government to include cotton farmers in such programmes as the fertilizer subsidy so that they would also be able to produce more cotton for the textile industry.

Speaking to the Financial Intelligence (FI) on the side of the workshop, Mr Mohammed said the farmers have lost confidence in the cotton marketing companies operating in the area “since most have gone bankrupt and are unable to even pay their workers for several months now”.

He explained that this current state of the marketing companies has adversely affected their ability to provide farmers with seeds, fertilizers and other logistics which they normally provide during the cropping season.

“As we speak now, they have not provided any of these logistics for us”, he said.

The chairman also alleged that “the Agriculture Development Bank (ADB) is fed up with the cotton companies because of huge stocks of unpaid loans they owe the bank”.

The farmers are therefore calling on government to look for investors for the cotton industry since the current companies need strong competitors to make them sit up.

Another farmer, Nayile Ibrahim from Tumu fumed over government’s decision to exclude cotton growers from the fertilizer subsidy.

He said if government does not subsidise fertilizers for them, but leaves them at the mercy of the Cotton Marketing Companies who buy cotton on credit and withhold monies due farmers over long periods, then obviously the cotton industry will be wiped off completely.

Our checks at the ADB headquarters to substantiate the claims of these farmers was however unrewarded as the bank was not prepared to disclose what they regarded as a customer relation issue.