Since the commencement of the groundnut trading season one month ago, the purchasing points (seccos) in the Sabach Sanjal District have been unable to engage in groundnut trade due to a currency supply deficiency as reported by the National Food Processing and Marketing Corporation.
This occurs days after Gambian farmers lodged complaints regarding the government’s practice of approving groundnut sales on credit, citing the government’s insufficient cash supply to procure groundnuts from various purchasing points as a precarious financial situation for the farmers.
Farmers in the Sabach Sanjal District assert that purchasing points have ceased credit purchases of their groundnuts due to the fact that they credited the government with a vast quantity of groundnuts valued in the millions of dalasi. They further stated that nearly a month has passed since some farmers sold their groundnuts on credit without receiving their payment.
Mam Bukary Gaye, a resident of Ngayen Sanjal and a farmer, informed Foroyaa that their procuring point has ceased groundnut purchases and has been cash-strapped for over a week, compelling impoverished farmers to sell the groundnut at a reduced price compared to its customary selling price.
“The government should take immediate action to make our payments; the current situation contradicts what President Barrow promised us during our last meet the farmers tour,” he claimed.
“Due to a cash shortage, our purchasing point, which credited us with over 6 million dalasis, has ceased purchasing our groundnut.”
His remarks included the fact that businessmen are preparing for increased interest rates on fundamental commodities obtained by farmers on credit and that this unintended halt has increased their debt burden. Furthermore, he stated that they rely on farm produce to support their families.
“This circumstance affords businessmen the chance to exploit impoverished farmers, given that we (farmers) have been relying on credit to purchase essential commodities in order to meet our basic needs.” “In order to receive credit from these businessmen, an individual must exchange their groundnut for a fundamental commodity,” he elaborated.
Similar to the purchasing point in Ngayen, the Dibba Kunda purchasing point presently acquires groundnuts on credit due to insufficient currency on hand. Farmers bemoan the government’s sluggish payments of indebted groundnut, with some farmers waiting weeks for payment after the government credits their groundnut.
Another farmer and Checken Village resident, Bassy Secka, shared these sentiments and urged the government to assist them in making payments to the farmers.
“Since selling my groundnut to the secco, I have not received payment,” he explained. “Everyone is already awaiting payment.”
Muhammed Njie, managing director of National Food Security Processing and Marketing Corporation, responded that when questioned about the cash shortages at the buying points, he explained that the buying points occasionally experience a lack of funds because, for security reasons, the corporation does not provide large sums of money to individual buying points.
“Transporting large sums of money to the purchasing points is logistically challenging due to the inherent risk involved,” Njie explained. “However, if the supply runs out, we also provide cash to be used as payment at the purchasing points (seccos) across the nation.”
He stated that the company intends to implement a mobile payment method in order to digitalize the system and rectify the payment delay. Additionally, he stated that purchasing points occasionally cease groundnut purchases in anticipation of currency supplies due to accumulated debt.
MD Njie urged farmers to postpone transporting their groundnuts to the purchasing points until currency is available, as doing so only increases the seccos’ debt burden.