Karuturi Agro Products Plc said that Indian farmers were only hired as consultants, denying claims that it had sub-leased land.
Indian farmers have been hired to consult on specialty crops such as cotton said Birinder Singh Executive Director of Karuturi.
Invitations for consultancy were extended to everyone including Ethiopian agriculture experts and not just to Indians according to Mr. Singh.
The Karuturi project in Ethiopia is an international effort, stresses the executive director.
Initial reports last week claimed that Karuturi had invited Indian specialty farmers to sublease 20,000 hectares of the 100,000 hectares that it is currently operating in Gambella Region. The farmers were invited on a 35% profit sharing scheme according to previous reports citing a senior Karuturi official.A press release form Karuturi, however, insists that such a scheme is prohibited by the terms of the land lease which prohibits transfer of lease to other individuals or companies until 75% of the land it has leased have been developed.
Karuturi states that invitations for consultancy were extended for the construction and management of warehouses, workshops, post-harvest mechanisms and fuel stations. Suppliers will also be required for agriculture inputs including seeds, pesticides, fertilizer and other chemical.
It is to be remembered that Karuturi lost 15 million dollars of maize in floods last month.
The company has contracted Water & Power Consultancy Services (WAPCOS), an Indian public sector corporation to provide consulting services in flood control and the design of irrigation and drainage systems.
Source: Addis Fortune
