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| National |
| Tobacco farmers in K155m input debts |
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by
George Ntonya, 03 December 2002
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Tobacco growers in the country have failed to pay farm-input suppliers about K155 million for fertilizer they got last season on credit, Tobacco Control Commission (TCC) has confirmed.
According to the commission, which provided the input loans to smallholder farmers, only 58 percent of K380 million has been paid back.
Tobacco Association of Malawi (Tama) president Albert Kamulaga told farmers in Lilongwe last weekend that he was disappointed with the default rate whenever tobacco growers get loans for farm inputs.
He said that some lending institutions were reluctant to help farmers because of the poor repayment record.
“For example the loans that the government gave out last year through the Tobacco Control Commission, [about] 60 percent of the loan was paid,” a statement from Tama quotes Kamulaga as saying at Kasiya. “We are now talking of K155 million being owed to fertiliser suppliers in the country.”
TCC General Manager Geoffrey Chapola said in an interview on Monday the farmers would have to repay the loans before applying for others this season.
“Loans will not be written off. Recoveries will continue,” he said in response to a questionnaire.
Without giving more details, Chapola said the commission has closed all loopholes that have enabled some farmers to default.
He also allayed fears that the country’s tobacco production would be affected if the defaulters do not receive loans for farm inputs this season.
“The defaulters will not affect production because we take on board new entrants so long as they meet the qualification criteria,” he said.
Three years ago, Tama impounded about 20 trucks from its members who benefited from a scheme funded by African Development Bank (ADB) to ease tobacco transportation.
The beneficiaries failed to repay their loans which were obtained through Tama.
Only registered and credit-free farmers, who have been selling tobacco for the past three years, are eligible for the loans. |
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