Sugarcane out-growers, others to finance NSMP project

The National Sugar Development Council (NSDC) has declared that sugarcane out-growers would henceforth share in the financial responsibility of their operations to guarantee their commitment in the ongoing implementation of the National Sugar Master Plan (NSMP).

Latif Busari, executive secretary of NSDC, stated this at a meeting in Abuja with sugarcane out-growers, financial institutions and other stakeholders in the NSMP project.

Busari said meeting 100 percent financing of the out-growers scheme in the project implementation was not feasible.

According to him, the meeting was intended to acquaint farmers with the roles expected of them in support of the goals of the NSMP and the modalities for achieving them.

The NSDC boss emphasised that farmers must bear part of the cost, otherwise they would see the scheme as an opportunity to collect their share of the national cake as was the case in the past.

He maintained that the council would no longer be directly involved in the out-growers scheme, but would only facilitate the process in collaboration with the Federal Ministry of Agriculture and Rural Development.

Busari explained that the facilitation includes assisting farmers to form cooperative associations if they had not done so as well as introducing them to consultants who will help them to produce the feasibility report or draw up memorandum of understanding (MoU).

“The council will also introduce the cooperative associations to banks and equipment suppliers and provide up to 50 percent of the cost of out-growers’ operations as a way of sharing the risks with the banks.