AMCOS: Pay back loans

25Jan 2020
The Guardian
AMCOS: Pay back loans

IKUNGI district commissioner, Edward Mpogoro has given two weeks to agricultural marketing co-operative societies (AMCOS) to repay loans secured from BioSustain Tanzania Limited.

Edward Mpogoro

According to the DC the farmers’ cooperative societies had in total borrowed 6,351,600/- from the company for the purchase of agricultural inputs.

BioSustain Tanzania Limited works to revive cotton production with an organic value in Singida region and to provide markets for organic certified products.

Mpogoro made the directive on Thursday when speaking during the district’s safety and security committee meeting held at his office.

“AMCOS leaders must ensure all the monies are repaid back to the lender since they are required to submit them to the Tanzania Cotton Board (TCB). Village and ward executive officers should collaborate with leaders of the cooperative unions to trace loan defaulters”, said the district commissioner.

He said the government will take stern legal measures against loan defaulters insisting they will all be traced. He accused cotton farmers for being dishonest to the lender who had provided them with agricultural inputs during the past farming season.

 “Framers were required to sell their harvested cotton at specific AMCOS where they had secured loans, but most of them sold cotton to other cooperative unions in order to avoid repaying their loans. Your leaders should make sure that all the debts are paid in two weeks”, he noted.

BioSustain Tanzania Limited manager, Zakaria Marco said the company has paid most of the cotton farmers in the 2019/2020 season with exception of 330 who will soon be paid 18,500,000/-. He urged them to continue cultivating the crop because prices are likely to be better in the coming season—2020/2021.

“We only experienced payment challenges in the 2019/2020 season but we promise to offer better prices and pay farmers on time  for this season”, said Marco as he appeals to farmers to continue cultivating the crop.

He said the company is determined to support cotton farmers in Singida region as well as ensuring they get all the necessary agricultural inputs.

Misughaa ward executive officer, Olvery Peter said farmers have started to repay their loans. He said sunflower farmers who secured   50m/- loan from Tanzania Agricultural Development Bank Limited (TADB) have so far repaid more than 40m/-.

Top Stories