AMA regulatory role under spotlight:
THE regulatory role of the Agricultural and Marketing Authority has come under spotlight ahead of the start of the cotton marketing season, amid revelations that some private companies are already making manoeuvres to entice farmers into side marketing.
There are fears the bulk of this year’s crop could end up in the hands of private buyers, despite Government having funded more than 90 percent of cotton production under the Presidential Input Scheme. The intake season begins in a few weeks.
Cotton output is expected to increase from 30 000 tonnes last season to 110 000 tonnes.
Information obtained by The Herald Business indicates that some private merchants have started delivering woolpacks including in areas where they have supported with very little inputs. For instance, Grafax and China Africa have started dispatching woolpacks in Gokwe in quantities believed to be far more than what is required for support rendered.
According to AMA figures released on March 16, 2017, Grafax invested $815 000 while China Africa sunk $774 000 in that region. Government disbursed inputs worth about $15 million. It has also emerged that some private companies are promising farmers spot cash and misleading Government will not have money to buy their crop given the cash shortages.
AMA, as the regulator is empowered to cause arrest and prosecute unscrupulous merchants for non-compliance and promoting side marketing, suspend licences for errant merchants and to cancel licences for continued breach of cotton marketing regulations.
Industry players believe AMA has previously demonstrated a total reluctance to enforce effective deterrent measures or penalties, resulting in chaos in the marketing of the crop.
“AMA has to be on top of the situation because any lapse on regulatory enforcement will result on Government failing to recover its investment,” said one industry player.
“These companies have already demonstrated the desire to buy the crop they have not funded; they are promising farmers cash and are already dispatching empty bags even in areas where they have not provided inputs. For the interest of the nation and the sustainable recovery of the industry, something has to be done.”
Efforts to get a comment from AMA was fruitless.
During a recent visit to Gokwe, local traditional leaders expressed concern over the manoeuvres by private companies “to steal the crop funded by the Government”.
“These companies brought very little input; in most instances seed only,” said Chief Nemangwe.
“But now that we are going into the intake season, we now see their trucks of woolpacks. It is clear that they want to steal the crop funded by the Government and as local leaders, we are appealing to the Agricultural Marketing Authority to tighten regulatory controls.
“Any regulatory lapses would have serious repercussions on the Presidential Input Scheme.”
The three-year input scheme began last season and will end next season.
Chief Goredema described the manoeuvres by private companies as an “act of sabotage”.
“Government should not allow this to happen,” said chief Goredema.
“We are watching the situation closely as local leaders but we also want the Government and AMA to be on the forefront to stop these companies. We are also doing outreach programmes educating our farmers to deliver the crop to Cottco, which funded them.”
A Government official monitor- ing the presidential cotton input scheme in Gokwe described the development as “sad”.
“It is sad that they are lying to farmers that are were free to sell their crop to buyers of their choice because the crop was financed by the President and is for everyone,” said the official.
“That is a perfect act of sabotage and we just hope AMA will be on the lookout during intake period. They are bringing bags to buy the crop they have not funded. It is unacceptable.”
Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made has since warned that private cotton merchants found dabbling in side marketing of cotton in the forthcoming season would face the full wrath of the law. He said the Government was deeply concerned over “poor funding” of the crop by the errant merchants and largely blamed them for decline of investment in the cotton industry.
Dr Made said the Government would ensure relevant agencies, including the police and the Agricultural Marketing Authority would be on the ground to ensure orderly marketing.