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Govt moves to resolve Tongaat Huletts, farmers dispute

04 Dec, 2018 - 14:12 0 Views
Govt moves to resolve Tongaat Huletts, farmers dispute Vice President Kembo Mohadi

eBusiness Weekly

George Maponga
MASVINGO – Vice President Kembo Mohadi is working flat out to resolve the sticking Division of Proceeds (DOP) dispute pitting Lowveld sugar producer Tongaat Huletts Zimbabwe and hundreds of indigenous cane farmers that has been raging for over a year.

Tongaat and commercial cane growers at Mkwasine,Hippo Valley and Triangle are at loggerheads over the DOP issue which forced the latter to approach the VP’s office for help.

DOP is a scientific ratio used to share proceeds from sugar cane milling between the miller (Tongaat) and outgrowers (indigenous farmers.

Last year, Government through the Ministry of Industry and Commerce agreed Tongaat’s share of DOP to increase from about 17 percent to 23 percent which was backdated to 2014, courting outcry from farmers.

The farmers then approached VP Mohadi’s office last year in an attempt to find a lasting solution to the DOP standoff.

Minister of State in VP Mohadi’s office Davis Marapira said engagement was currently underway to resolve the DOP stand-off.

Marapira said he was leading efforts to break ice between the feuding parties on behalf of the VP.

”I am currently engaging both Tongaat and cane farmers in the Lowveld to find a lasting solution which is beneficial to all the parties in the DOP dispute,”he said.

”I am leading the talks between the two parties on behalf of the VP who is the one who was approached by cane farmers seeking assistance.

I am happy with the progress that we are making in the talks with both parties and I am optimistic that a solution will be found in the next few weeks,” said Marapira.

The Minister said Government wanted a solution that satisfied both parties to engender harmony in the Lowveld sugar industry which is a critical sector in Masvingo economy and the nation at large.

”We want all the parties to agree on a common position a situation we feel will be good for the entire sugar industry in the Lowveld. We will try by all means to make sure we come up with a determination that appeals to both parties,”said Cde Marapira.

Former Industry and Commerce Minister Dr Mike Bimha last year announced that Government was working on a national sugar industry development strategy to address challenges afflicting the industry.

Among other issues cited in the strategy was how to make out-grower farmers more productive through repealing some colonial era laws that still govern operations in the industry.

Another plan was also to court more private players in sugar milling in the medium to long term to increase the surface area of sugar cane milling while breaking up the monopoly currently enjoyed by Tongaat.

Tongaat owns the country two sugar cane mills at Hippo Valley and Triangle at the moment and there have been calls for more mills to be opened in anticipation of a boom in sugar cane output following the advent of Tugwi-Mukosi Dam.

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