Agency terminates contract with Karuturi

Addis Ababa, December 31, 2015 (FBC) – The Ethiopian Agricultural Investment Land Administration Agency has terminated its contract with Karuturi Agro Products PLC.
Karuturi was licensed eight years ago to engage in agricultural sector in Ethiopia with a registered capital of 138 million US dollars.

It received 300,000 hectares of land in Agnwak woreda in Gambella Regional State on the same year.

However, after three years, 200,000 hectares of land was retaken from the Indian company as it was incapable to develop the land. The remaining 100,000 hectares was given for it.

Of the 100,000 hectares of land it was given, the company managed to develop only 1,200 hectares, said Daniel Zenebe, Public Relations Director at the Ethiopian Agricultural Investment Land Administration Agency.

After repeated warning, the agency terminated the lease agreement as the performance of the company was found below expected, he said.

According to Daniel, the agency terminated its agreement on December 25, 2015.

The 98,800 hectares of land developed by the company will be confiscated, according to Daniel.
Click here to see what the Owner of company says .