• Agro dealers have been complaining so much because their businesses have been affected.
• The payment will at least give them a relief.
• Government should however improve their payment structure.
Small Scale Farmers Development Agency (SAFADA) says government’s move to dismantle almost 80 percent of the K1.4 Billion owed to agro dealers will give relief to the beneficiaries.
Speaking in an interview with Money FM News, Organization Executive Director Boyd Moobwe said the move is a step in the right because most agro dealers have been complaining about delayed payment which has affected their businesses.
Mr. Moobwe stated that now that part of the debt has been paid, agro dealers will be able to participate fully in the next farming season.
He however advised government to change its payment model and build a good relationship with the agro dealers who have been providing farming inputs to the farmers.
“It is a good move, agro dealers have been complaining so much, their businesses have been affected because they depended so much on the same amount government owes them.”
“The payment will at least give them a relief, and they will be able to participate in the 2021/2022 farming season. We just urge the government to improve their payment structure. It’s unhealthy for government to have such a relationship with Agro dealers,” Mr. Moobwe said.
Minister of Agriculture Michael Katambo recently disclosed that Government has dismantled almost 80 percent of the K1.4 Billion owed to agro dealers across the country, and now has a balance of about K400 million.
Mr. Katambo said his Ministry is still engaging the Ministry of Finance to see how the debt which accumulated over the years can be paid in full.