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Zambia: High Court Grants AGL Injuction
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The Times of Zambia (Ndola)
30 June 2008
Posted to the web 30 June 2008
THE Lusaka High court has granted Alliance Ginneries Limited (AGL) an injunction restraining Continental Ginneries Limited (CGL) from buying cotton grown by farmers holding contracts with AGL in Southern Province.
Mr Justice Albert Wood ordered CGL to stop inducing or unlawfully procuring or interfering with agreements between AGL and its agents or farmers. The injunction was granted on June 16.
In affidavit, AGL director Patrick Nyumbu said, during the 2007/2008 planning season, his company devised a scheme whereby micro-credit financing agreements were signed with a number of agents to act as sole distributors for the company in specified areas for distribution, recovery and collection of inputs.
The inputs included seeds, fertiliser, sprayers and pesticides used in the production of cotton.
Mr Nyumbu said during the season in question, his company managed to put together 520 distributors, who provided inputs to more that 20,733 farmers out of which 9,510 were from the Southern Province.
Mr Nyumbu said the farmers in Southern Province managed to cultivate and planted 9,510 hectares of seed cotton.
"As a result of these out growers pre-financed schemes, the plaintiff has financed a total of 9,510 farmers in Southern Province alone in the current season.
"Based on information from the seed control and certification institution (SCCI), I verily believe that the defendant company has only pre-financed approximately 8,473 hectares of seed cotton both in Southern and Eastern provinces," he said.
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And National coordinator of the Cotton Association of Zambia (CAZ) Joseph Nkole also confirmed in an interview in Lusaka yesterday that Dunavant Zambia had also obtained an injunction restraining CGL from buying cotton it financed.
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