COTTON PRODUCTION TO GET A MAJOR PUSH (BACK PAGE, WED, MAR 9, 2011)

GHANA’S cotton industry is set for a leap this year following the successful take-off of the cotton sector revival programme, dubbed the ‘White Gold Campaign’.
An estimated 100,000 metric tonnes of lint cotton is expected to be produced in Ghana by the end of next year, which would mark a significant departure from the current production levels of about 3000 metric tonnes.
About 100,000 farmers would undertake cotton farming this year and this figure is expected to double in the next coming years.
The Vice President, Mr John Dramani Mahama announced this in Nanton in the Northern Region when he launched the operations of Armajaro Ghana Limited, one of the three companies that have been licensed to deal in cotton under the programme.
The other two are Wienco Ghana Limited and Olam Ghana Limited. Under the programme, each of these companies has been allocated a zone to operate in allowing them to pre-finance the activities of cotton farmers in that zone and to engage in the purchase of the raw material.
The role of the Ghana Cotton Company Limited has been limited to the ginneries, where it would make profit from the processing of the raw material for any of the licensed buyers under a tolling arrangement.
Mr Mahama explained that the revival of the cotton sector by the government in partnership with the private sector was directed towards creating a sustainable cash crop economy for northern Ghana, just as cocoa was doing for the south.
“Such an initiative would open employment avenues for people in the north and help stem the tide of poverty, which is more pronounced in the Savannah areas,” he stated.
The Vice President indicated that the World Bank and the International Finance Co-operation (IFC) had agreed to support the cotton revival initiative, particularly in building strong farmer organisations to advance the interests of cotton farmers.
He said as part of reforms of the cotton sector, prices of cotton per tonne per period would be announced to ensure transparency in the dealings of players in the value chain.
The Minister of Food and Agriculture (MOFA), Mr Kwesi Ahwoi attributed the successful take-off of the cotton revival initiative to a collaborative work between his ministry and that of trade and industry.
“Mention must be made particularly of Mr Mahama Ayariga, a former Deputy Minister of Trade and Industry for his unflinching commitment towards the conception and implementation of the project,” he stated.
The Chairman of Armajaro noted that his company had a proven track record of good performance in the trading of cocoa and gave the assurance that this performance would be replicated in the cotton sector.
“Last year we spent $3m to assist farming communities and this year we intend to invest a minimum of $8m,” he revealed, adding that by the third year, the company’s new investments would have exceeded $30m.
The fortunes of the cotton industry in Ghana had dwindled in the recent past owing to factors such as the rising cost of inputs, unstable international prices of cotton and high interest charges on agricultural loans, which posed operational challenges to the Ghana Cotton Company Limited.