The cotton sector will benefit from a $ 10 million boost

News from Tuesday, April 30, 2019

Source: Graphic.com.gh

2019-04-30

RMG Ghana, a farm input company, will invest $ 10 million in the cotton industry as part of a five-year project.

The investment will cover the supply of inputs to farmers, operational costs and marketing.

Cotton production in the country is expected to increase from 4,000 metric tonnes to 50,000 metric tonnes.

This initiative is part of a strategic partnership agreement between RMG Ghana and Wienco Cotton to make Ghana one of the leading cotton producers in Africa.

Relaunch

Speaking at a revival of Wienco Cotton's activities in Tamale, the RMG Ghana Group's general manager, Mr. Daniel Ruegg, said the event was aimed at renaming the industry's business. cotton.

He added that the investment of his team would contribute to the expansion of the cotton farms, the timely availability of production inputs allowing high productivity and improving the income of cotton producers. .

"We will pre-finance the acquisition of all inputs and will also sell cotton on the international market. Ghana's white gold, as it was previously known, must become a decisive factor in the country's economy, "said Ruegg.

challenges

Mr. Seth Osei-Akoto, Director of Crops at the Ministry of Food and Agriculture (MoFA), said that despite efforts by successive governments to resurrect the cotton sector since the beginning of its commercial production in the country in 1968, challenges, resulting in a decrease of its production in the country.

"The government wanted to revitalize the cotton industry in Ghana and I would like to congratulate Wienco Cotton and RMG Ghana for taking this bold initiative to reorganize the industry," he said.

According to Mr. Osei-Akoto, it is after the launch of the cotton industry's recovery strategy in November 2010 that the companies Wienco Cotton, Armajaro Cotton and Olam Cotton emerged in the sector as investors chosen, but some had to withdraw from production later because of the challenges.

The minister mentioned some of the following bottlenecks: poaching of seed cotton, diversion of inputs, low engagement of farmers, ethnic conflict, inadequate regulation, non-compliance with zoning, and weak support for extension.

Osei-Akoto urged RMG Ghana and Wienco Cotton to use their rich experiences and lessons learned to guide them in their mission to revitalize cotton.

Government support

The minister badured them of the government's support for the promotion of the cotton sector, which is one of the basic commodities of the "Plantation for Export and Rural Development Program".

According to him, "the Ministry is in talks with the Chinese group Xinjiang Tianye for the establishment of agricultural industrialization parks in Ghana's Northern Savannah Ecological Zone (NSEZ) for commercial cotton production and production. Other cultures.

"The British group Arailius also intends to invest in the production of cotton and textiles, while the Chinese Society of Agricultural Machinery and Engineering (CAMEC) will establish mechanization centers in production districts to promote cotton and commercial production, "he added.