Parliamentarians debate credit facility for sugar cane production
The Majority and Minority in Parliament last Thursday engaged in a debate over a credit facility of $24,540,000 for sugar cane production at Komenda to feed the Komenda Sugar Factory.
Advertisement
The Export-Import (EXIM) Bank of India is extending the facility to Ghana to build irrigation systems and support out-grower farmers to produce sugar cane to feed the revamped Komenda Sugar Factory in the Central Region.
The minority said given that the construction of the factory was completed in June this year, the government delayed in seeking the credit facility to support farmers to produce sugar cane to feed the industry.
The minority said it did not make business sense for the government, without the assurance of a raw material, to build the factory and shut it down for five months.
But the majority rebuffed that suggestion, and indicated that the facilities for the construction of the factory and the support for irrigation and out-grower farmers were sought simultaneously.
However, it said the construction of the factory was completed six months ahead of the scheduled completion period of December, hence the perceived delay in securing a credit facility for out-grower farmers.
At the end of the debate, Parliament approved the $24,540,000 credit facility.
The Komenda Sugar Factory was built with a $ 35 million facility from India.
Minority's views
The Member of Parliament (MP) for Effutu, Mr Alexander Afenyo-Markin, was the first to raise an issue with the credit facility, indicating that the factory was put up with no assurance of sugar cane supply.
That, he said, was a result of poor planning on the part of the government.
The MP for Ablekuma West, Mrs Ursula Owusu-Ekuful, said when Parliament was approving the $35 million facility for the construction of the factory, the question was asked about the source of raw material for the factory.
"Five months after the completion of the factory, the ministry is now bringing the agreement. Where is the sense of urgency.
"If we had enough sugar cane now, we would not come looking for $24 million," she said.
The MP for Kwadaso and ranking member of the Committee on Food, Agriculture and Cocoa Affairs, Dr Owusu Afriyie Akoto, said the $24 million was too much for production of sugar cane on 2,000 hectares.
Wrapping the debate for the minority, the Minority Leader, Mr Minority Leader Mr Osei Kyei-Mensah-Bonsu, asked for more details of the irrigation and out-grower support project to be provided.
Majority's position
The MP for Nanton and Deputy Minister of Trade and Industry, Mr Ibrahim Murtala Muhammed, said it was wrong to say that the factory was shut down but rather it had stopped production.
He said the completion of the factory was completed six months ahead of schedule and indicated any suggestion that the government had put up the factory without the assurance of raw material was mute and politically motivated.
Mr Murtala Muhammed said the government wanted to secure the facility to build irrigation facilities and support out-grower farmers to produce enough sugar cane to feed the factory.
He said the aim of the government was to ensure "continuous and unabated supply of sugar cane."
The MP for Tamale South and Minister of Employment and Labour Relations, Mr Haruna Idrissu, said the credit facility would support out-grower farmers to produce 100,000 tons of sugar cane per annum.
He said it was part of the initiatives of President John Dramani Mahama to transform the economy and reduce the import of sugar.
Mr Idrissu said sugar had a lot of benefits including energy generation and the ethanol by product for pharmaceutical industry.
The Deputy Majority Leader, Mr Alfred Agbesi, said the project would revive the sugar industry and create more employment to transform the lives of people.