The request came after the AMCOS failed to secure loans from the Tanzania Agricultural Development Bank (TADB) despite fulfilling the required conditions including opening accounts and depositing money.
Speaking over the weekend here, AMMCOS chairman Hussein Ally said when the Prime Minister Kassim Majaliwa visited the region last year to promote palm farming he wanted the AMCOS to unite with the farmers and asked the Bank to give them a loan to run their activities but so far no loan was disbursed.
"One of the conditions requested by TADB was to open an account and deposit the money as collateral and we contributed and deposited 10 per cent of the loan we requested, but so far nothing has been done" said Ally.
Another challenge, Ally said that was the availability of the improved oil palm seeds, which is known as
Responding to the challenge of seed shortage, Director General of the Tanzania Agricultural Research Institute (TARI), Dr. Goefrey Mkamilo, praised the AMCOS in response to the Prime Minister's directive and that farmers from the AMCOS will be given free seedlings since they are well-developed at the institute.
Dr Mkamilo, who is also the Country Coordinator for oil palm crop said the farmers would be given free seedlings that were already produced in the local Councils and from military forces camps were are produced.
He said the first strategy set was to produce improved seeds that were to be given for free to farmers.
“The government’s intention is to increase production of the crop hence meet the country’s edible oil demands.”
Agriculture Officer in Kigoma Regional Secretariat, Joseph Rubuye, said that the order to disburse oil palm seedlings for free has been issued to all councils and urged farmers not to worry about their availability.
Kigoma Regional Administrative Secretary, Rashid Mchatta, in response to the loan crisis, said he would call on AMCOS leaders and the bank to resolve the problem and link them with other financial institutions.