ADB supports cotton farmers to increase incomes

Accra, June 21, GNA - With support from the Agriculture Development Bank, (ADB) cotton farmers' gross incomes went up from 38.4 billion cedis during the 2004/2005 cropping season to 57 billion cedis during the 2005/2006 season, Mr Clement Eledi, Deputy Minister of Food and Agriculture, said on Wednesday.

"This is expected to go up to 75 billion cedis from the new investments in the 2006/2007 cropping season," he said. Mr Eledi was responding to a question in Parliament on Wednesday in answer to a question from Mr Edward Salia, NDC-Jirapa, on what the current situation of cotton production in the country was since the involvement of the American investor in the Ghana Cotton Company (GCC) a few years ago.

The Deputy Minister said the ADB was the main bankers of the GCC and by 2003 GCC's indebtedness to the Bank had risen affecting its operations.

He said this le d to an arrangement under which "ADB acquired 78.2 per cent of shares in GCC". Mr Eledi said an American/Ghanaian company later approached ADB to take over the shares and in 2004 an agreement was reached between ADB and GhanAmer to transfer the 78.2 per cent shares in GCC to GhanAmer. "By the agreement, the Company was to pay for the shares over a 10 year period and invest 40 million dollars in the form of working capital."

He said the Company failed to fulfil the terms and conditions leading to an abrogation of the agreement by ADB. "However, due to the importance of the cotton industry to the economy of Ghana as a whole and the north, in particular, ADB continued its support to GCC.

"During the 2004/2005 cropping season, ADB's support to GCC was 37.944 billion cedis to crop almost 11,336 hectares of cotton....For the 2006/2007 season, the support is estimated at 85.11 billion cedis to crop 2,5303 hectares," Mr Eledi said.

He said the Ministry was also making available 27.45 billion cedis this year to crop 10,121 hectares of cotton in the North. In response to another question, Mr Eledi told the House that the three Northern Regions were covered in the Ministry's programme to enhance productivity.

He said for this year, a programme to provide underground and surface water for small-scale irrigation would take off. Mr Joseph Labik, (IND-Bunkpurugu-Yunyoo) had asked for measures taken to stop the yearly cycle of famine in the Northern, Upper West and Upper East Regions. "Mr Eledi said the Ministry had supported the Northern Seed Growers Association to produce certified seeds of various crops for Northern farmers.

"In the long run, however, the Ministry has started major programmes to promote mango and cotton as cash crops in the North. In answer to another question on when the Ministry would introduce subsidies on farm inputs for the Ghanaian farmer to increase productivity, Mr Eledi said; "merely providing subsidies on agriculture inputs may not lead to increased productivity".

He said the Government had, however, established various programmes to support farmers to increase productivity.

He said Economic Community of West African States was also working on making fertilizer available to member countries as part of efforts to assist farmers in the Sub-Region.