#Article (Archive)

Groundnut credit buying should be discouraged

Jan 20, 2011, 12:22 PM

Since the commencement of the 2010 groundnut-marketing season on 23 December 2010, the season is reported to be doing well, but not without constraints.

So far, according to our provincial correspondents, the trade is going well in some parts of the country.

However, they have observed that, at many seccos (buying points), the phenomenon of credit buying is also the order of the day.

At the beginning of the official start date for this year’s groundnut-marketing season in the country, farmers were hoping for a successful season.

However, their hopes and aspirations will be hampered if the groundnut buyers fail to pay them their monies, on time.

The practice of credit buying should be discouraged, since farmers need to receive their cash in time to solve their myriad of problems.

We, therefore, urge the Agribusiness Services and Producers’ Association (ASPA), the inter-professional body vested with the management of the groundnut sub-sector, and the Ministry of Agriculture to monitor the process of groundnut buying with due diligence.

The buyers must all adhere to the ASPA-Government stipulated buying price, and must ensure timely payment to farmers for their produce.

The longer the delay in not paying farmers their monies, the more trouble for them, since they  keep on visiting the buying points, on a daily basis, to see if there is any cash for them.

In our view, this is unacceptable, and should be discouraged.