Cocoa buying company says it paid for all cocoa bought
Cotton companies not paying for produce
Accra (Greater Accra) 04 January 2002 - The Management of Federated Commodities Limited on Thursday said it has paid for every bag of cocoa delivered at all its depots and does not owe any farmer.
In a statement signed by Mr Andrew Agyekum, Administrative Manager, the company said it had transferred enough money to all its bankers in the operational areas.
"Every farmer from whom cocoa has been bought so far this season has been issued the equivalent Akuafo cheque.
"If regrettably any farmer has not been able to cash his cheque this would not be due to lack of funds from our end but most probably to some administrative bottlenecks in our banking system."
The statement said no such report had been made to it. "Federated Commodities Ltd. assures COCOBOD that it will continue to strive to complement its efforts in ensuring the well-being of the farmer as a primary condition to improving the cocoa industry," it said.
The Ghana Cocoa Board a week ago expressed concern about reports that Licensed Buying Companies (LBC) were unable to pay for cocoa bought from farmers and appealed to all such companies which owed farmers to pay them immediately to avoid "any unpleasant sanctions".
A statement signed by Mr Kwame Sarpong, Chief Executive, said sufficient funds had been released to all LBCs currently in the field to pay for cocoa bought.
It identified nine companies, which had been given money to pay for cocoa bought, as Produce Buying Company Ltd., Federated Commodity Ltd, Kuapa Kooko, Cocoa Merchants Ltd., Transroyal (Ghana) Limited, Adwumapa Buyers Ltd., Royal Commodities Ltd., Akuafo Adamfo Marketing Company Ltd. and Bowohoso Limited.
COCOBOD said it was surprising that cocoa farmers were complaining about the non-payment for purchase during this major cocoa season. It said a recent visit to the field by its officials revealed that one of the LBCs was heavily indebted to the farmers for cocoa purchased.
"The Board finds this sad situation unacceptable since it is causing a lot of concern and anxiety to the government and untold hardship to the farmers."
There had been persistent reports for the past several weeks from the buying centres of the inability of the LBCs to pay for cocoa.
GRi../
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Sunyani (Brong Ahafo) 04 January 2002 - There is an unprecedented increase in the smuggling of cocoa, petrol and petroleum products along the border with Cote d'Ivoire at Sefwi-Kaase in the Joabeso-Bia District of the Western Region.
Mr. Paul Kwasi Kyere, an opinion leader, and Opanin Kwame Amponsah a prominent cocoa farmer, both from the area, told the Ghana News Agency on Thursday that the incidence would have serious repercussions on the economic policies of the government, "if it goes on unchecked".
They said the smugglers used unapproved routes and bush paths between Ahimakrom and Pillar 34, and accused some official personnel of complicity in the crime.
The two therefore, appealed to the government to institute effective measures that would ensure that smuggling was effectively checked.
Meanwhile, members of the anti-smuggling task force of the New Patriotic Party (NPP) youth wing at Sefwi-Kaase have arrested two suspected smugglers and handed them over to the police. The suspects were allegedly spotted carrying head loads of cocoa to Cote d'Ivoire.
GRi../
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Tamale (Northern Region) 04 January 2002 - Cotton farmers in the Northern Region have been gripped with fear and disappointment following the failure of cotton companies to buy their produce in accordance with an agreement signed between the two parties, early last year.
Tension began to rise among the farmers when cotton companies operating in the region failed to honour their pledge to commence the cotton purchasing season in the third week of November last year as stipulated in the accord.
When the purchases eventually began the companies could not pay for the produce within seven days of procurement as agreed between the two parties.
Mr Patrick Apullah, Secretary of the Cotton Farmers' Association told the Ghana News Agency that the failure of the companies to fulfil their part of the bargain did not augur well for the textile industry.
"The rate at which the purchasing is going on and the non-payments are causing a great harm to the seed cotton farmers", he said.
Mr Apullah said, "after sinking all our monies into the cultivation of seed cotton, most of us are now desperately in need of money to buy food for our families. "We also need money to pay for our children's school fees", he said, adding that the farmers were surely going to face starvation and their children sent away from school if nothing was done about the situation.
Mr Apullah, therefore, called on government to intervene on behalf of the farmers to ensure that the cotton companies fulfilled their part of the agreement.
Such a step, he said, would prevent cotton farmers from being taken advantage of and protect them from undue hardship and save the cotton industry from undermining itself.
This was because no farmer would like to venture into the field of seed cotton cultivation if nothing was put in place to protect them from being swindled, he added.
Mr Apullah appealed to the cotton companies to live up to the trust bestowed on them by the agreement and purchase the seed cotton from the farmers to ensure that the co-operation so far enjoyed by the two parties continued.
He said the cotton sector constituted a key factor in the rural development effort of the government since it is inseparable from the development of the textile industry.
Whilst assuring cotton companies about the production of good quality seed cotton by farmers that met international standards, he cautioned against any further delay.
On May 31 last year cotton companies and cotton seed farmers signed an agreement, which stipulated among other things that cotton companies would start cotton purchases from the third week of November and pay for the produce between seven and 10 days after procurement.
GRi../
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