Business

Govt warns tractor owners over fuel advances

 

Responding to a question in Parliament on Wednesday, assistant Minister of Agriculture, Oreeditse Molebatsi said the ministry does not allow this practice as fuel was considered when determining the rates for payment of tractor owners. “I am aware that some tractor owners require advances for purchase of diesel from those wishing to plough their fields. My ministry does not allow this practice, unfortunately this arrangement is privately done between the tractor owner and the farmer without the ministry’s involvement,” said Molebatsi.

Molebatsi was responding to a question from Kanye South Member of Parliament Abraham Kesupile who wanted to know if the ministry was aware of the practice and how it discourages those farmers who cannot get the advance money. Molebatsi said tractor owners are encouraged to source funds for fuel themselves. 

According to the minister, the rates of ploughing and harrowing set for private tractor owners’ participation in ISPAAD took into consideration fuel, labour and maintenance costs.

“Private tractor owners have opportunity to secure seasonal loan from National Development Bank (NDB) where they get loan interest subsidy by government,” said Molebatsi. 

The government under ISPAAD subsidises interest rates by paying the difference between the market and prime rates. 

After the review of the ploughing rates in 2012, to mitigate against increase in fuel price and labour costs, government now pays private tractor owners P800 per hectare for ploughing, P360 for harrowing per hectare and P500 per hectare for minimum tillage.

Kesupile also asked the minister the logic behind restricting government tractors to a radius of 15 kilometres from their service centre. 

In response, Molebatsi explained that the travel restriction is 20 kilometers from base, not 15km.  He said farmers outside the radius areas are encouraged to engage privately owned tractors at government cost. 

“Government tractors under ISPAAD are not enough even to cover all farmers in the agricultural service centers area where they are based. Government tractors were meant for demonstration and training. Private tractor owners are encouraged to take up the opportunity to plough for farmers,” he said.

He said the decision to limit government tractors to work within a 20 km radius was informed by the fact that tractors are not meant for travelling long distance. 

“Any longer distance than the stipulated 20 km radius may lead to damaging of the tractor hydraulic system especially that they have to carry implements as well along bad field roads. Therefore it is crucial that tractors are engaged in ploughing than travelling to maximise area planted,” he said.