Komenda Residents Threaten To Demonstrate Against Lease Of Sugar Factory To Indian Firm

Komenda Residents Threaten To Demonstrate Against Lease Of Sugar Factory To Indian Firm

  • Komenda residents in the Central Region have announced their decision to protest the government's plan to lease the Komenda Sugar Factory to an Indian firm
  • The residents say should the Indians take the operation of the factory, local farmers would be omitted from the production cycle
  • Meanwhile, parliament has also stated that the government has yet to inform them of the intention to lease the factory

Residents of Komenda in the Central Region have announced their intention to protest the government’s proposal to lease the Komenda Sugar Factory to a private company.

The Trade and Industry Minister, K.T. Hammond, recently announced that the government was planning to lease the sugar factory to an Indian firm, West Africa Agro Limited, for a 20-year renewable term.

Komenda Residents Threaten To Demonstrate Against Lease Of Sugar Factory To Indian Firm
The Trade Minister, K.T. Hammond, says the factory lease to the Indians will revitalise it.
Source: UGC

He stated that while the government would retain 100 per cent ownership of the sugar factory, the Indian firm would manage its operations.

Read also

Trade minister says government to lease Komenda Sugar Factory to Indian firm for 20 years

However, the residents of Komenda are not pleased with the proposed arrangement.

Convenor for the Concerned Residents of Komenda, Samuel Awudzirato, told Citi News that should the deal go through, many sugar cane farmers in the area would lose out.

He alleged that the Indian firm would likely import raw sugar from India and process it at the factory rather than buying sugar cane grown in Komenda and processing it into white sugar.

He bemoaned that if that happened, over 10,000 local farmers would be cut out of the production cycle, which would benefit the host community in no way.

They have urged the government to rescind its decision or face their wrath.

Minority unaware of factory lease

Meanwhile, the minority in parliament says it is unaware of the government’s proposal to lease the factory.

Read also

BoG directs all Forex Bureaus to check Ghana Cards during transactions from August 1

Ranking Member on the Trade and Industry Committee of Parliament, Yussif Sulemana, told Citi FM that the Trade Minister, K.T. Hammond, has not informed parliament of the lease.

He said while it would have been ideal to summon the minister to speak on the matter, the house is currently on recess.

Instead, he intended to quiz the minister through a press statement.

According to him, the Komenda Sugar Factory’s objectives have not been met, and the parliament should have been informed about any deals concerning the factory.

Komenda factory’s timeline

YEN.com.gh reported that the initiative would also be a second attempt to revive the sugar factory since 1964.

The Komenda Sugar Development Company Limited was established that year but closed its doors shortly after.

The John Mahama-led government rehabilitated it in 2016, securing a $35 million loan from the Indian Exim Bank and an additional $24 million investment to rehabilitate the factory’s operations.

Read also

"We need our share": Mpraeso MP pushes GRA to monitor YouTube, Facebook revenues from Ghana

The factory is at present undergoing a test run in preparation for full operations.

Source: YEN.com.gh

Authors:
Cornerlis Affre avatar

Cornerlis Affre (CA and Politics Editor) Cornerlis Kweku Affre is at present a Current Affairs Editor at Yen.com. He covers politics, business, and other current affairs. He has worked in various roles in the media space for at least 5 years. You can reach out to him at cornerlis.affre@yen.com.gh