KARUTURI Global, which earlier agreed with the Ministry of Agriculture (MoA) to grow wheat on 300 thousand hectares of fertile land has fell to deliver its promises of becoming a leading agricultural company.

Karuturi was almost foreclosed after failing to repay a 65 million birr (a little over USD 3 million) loan extended via overdraft facility from the state-owned Commercial Bank of Ethiopia (CBE). However, the company immediately settled the minimum, 25 percent of the debt. But government officials told The Reporter that Karuturi is no longer reputed in Ethiopia.

Abera Mulat, director of agricultural investment and land administration agency, at the MoA told The Reporter that Karuturi no longer a reputable company in Ethiopia. According to Abera, the Indian giant has failed to deliver. The official went on to say that Karuturi is on the verge of collapsing in Ethiopia. “Karuturi has gone bankrupt following internal management crisis,” Abera said.

In a telephone interview from Bangalore, India, Ram Karuturi, CEO of the company, told The Reporter that he will continue investing in Ethiopia. Currently, he is selling out machineries and equipment worth some 15 million birr to repay debts the company has incurred here. Karuturi is known for borrowing from CBE, Dashen and Zemen banks. The loan extended to the company exceeds 170 million birr and the CEO said that his company is set to settle the debts by the end of this month.

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