Arusha: The government plans to reschedule the debt worth Sh2.7 billion borrowed by the sugarcane farmers from Azania Bank Limited.
Adolf Mkenda, the Agriculture Minister stated that he would soon take up the issue with the management of the Bank.
“Both sugar mills that were supposed to buy sugarcane have not bought sugarcane from farmers yet and we will seek debt rescheduling,” he said.
During his meeting with the farmers, he said that the government is aware of the issue and will meet bank officials to consider the plight of farmers.
The loan was extended to over 600 farmers and Agricultural Marketing and Cooperative Societies (Amcos) in Mbigiri, the site of one of the proposed plants, to buy inputs for sugarcane production.
According to the media report, the cane was to be sold to Mkulazi Holding Company Limited which plans to set up a factory to boost local production of the sweetener. However, none of the two plants – one at Mkulazi and another at Mbigiri – is operational although the government is keen to see them take off.