The Sunday Mail
Online Reporter
AT LEAST 16 out of 33 contractors have complied with Agricultural Marketing Authority (AMA) regulations, which require contractors to submit a list of their contracted farmers, copies of contracts, investment and total hectarage contracted.
The 16 contractors are in the categories of ‘Grains & Oilseeds’ and ‘Horticulture’.
The remaining 17 have registered, but are yet to submit all required information.
A contractor is a registered buyer who is a party to a grain or oilseed production contract.
Registration of contractors is in accordance with Statutory Instrument 140 of 2013, which states that no individual or body may purchase, import or export grain or oilseeds as well as enter into a production contract for grain or oilseeds unless registered with the Agricultural Marketing Authority.
SI-140 0f 2013 has been further strengthened by introduction of SI-274 of 2021 to ensure full compliance in the Grains & Oilseeds sub-sector.
According to the amendment, contractors are now legally obliged to deliver inputs to farmers they have contracted in time and ensure the contract includes the minimum of each input as set by AMA.
The amendment to the SI was aimed at specifying the duties of contractors, promoting honesty and fairness as well as criminalising breaches of contract.
Contractors are now required to pay the agreed purchase price for crops within agreed timeframes, failing which the contractor will be liable to losses incurred by the farmer.
Further, every registered contractor is now required to provide evidence of support extended to growers in the form of signed contracts, proof of inputs purchases and growers’ acknowledgment of debt.
AMA chief executive, Mr Clever Isaya said:
“The Authority is urging all contracts to fully comply with the contract farming regulations to foster orderly production and marketing. Non-compliant players will face the full wrath of the law.”
Mr Isaya further invited new players to consider entering into production contracts with farmers to promote the growth of the local agricultural sector.
