The Minority in Parliament is entertaining the fear that the recently commissioned revamped Komenda Sugar Factory risks collapsing because its viability is still in doubt.
According to the Minority, the challenges that lead to the collapse of the old sugar factory built by Dr. Kwame Nkrumah still exist and therefore could lead to the collapse of the company if care is not taken.
In a three-page statement which was read to journalists at a Press conference, Thursday, by the Ranking Member of Trade & Industry Committee, Prof. Gyan Baffour, the group contends that citing of the facility close to the sea could lead to expensive maintenance cost on the iron and steel component of the plant due to the salty breeze.
“This happened to the old plant and maintenance exacted a huge toll on the profitability of the factory. In those times, the plant had to be shut down every year to allow for the extraction of corroded matter from steel pipes. The factory ought to have been located a bit farther from the coastline”, he noted.
That aside, the diversion of farm land from the production of multi-crop to mono-crop sugar cane presents possibility insecurity.
The absence of reliable potable water to the factory and to out-grow farms for irrigation purposes is also another challenge which could lead to the collapse of the industry, the Minority argued.
“Reliance on the ‘galamsey’- polluted Pra-Offin River will challenge the survival of the factory as the mercury-poisoned waters may contaminate the end product. The primary canal to feed the farms with irrigation water from the Pra River has long collapsed. It has not yet been rehabilitated. How are the farms to be irrigated?” the group queried.
That aside, the group said the GH₵60.00 price per tonne is too low to sustain the interest of farmers in the business.
They argued that the low price coupled with transportation cost may discourage farmers from supplying the factory with their produce and there cautioned the government to reconsider the price.
The group also raised concern about power supply and the management structure of the company, which they argued could unduly raise the cost of production and make the factory uncompetitive and the product more expensive than imported sugar.
“These are critical issues that should engage the attention of government even as we strive for self-sufficiency in sugar production”, they argued.
The factory which was commissioned by President John Dramani Mahama last Monday, has currently been shut down to undergo maintenance checks for six months.
The US$35million revamped factory when in full operation, according to the President will generate direct and indirect employment to 7000 people.
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