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He said ethanol price should be cut in line with international prices.
As such, DPM Mutambara said the actual price of ethanol should be pegged at 70 cents a litre.
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He, however, said they could start with 85 cents a litre to jump-start the company and to lure consumers.
DPM Mutambara said there were social obligations relating to displaced farmers that Green Fuel should address.
He said the company should compensate the farmers and include all stakeholders in its joint implementation committee.
“With regards to the social and community issues, the key suggestion is that all households that were displaced or mishandled must be compensated and resettled.
“Out of the total 1 754 households displaced from their communal lands in Chisumbanje and Chinyamukwakwa communal lands, only 516 have been resettled.
“The company should immediately relocate the outstanding 1 238 households who have not been relocated on irrigated land,” he said.
DPM Mutambara said some of the displaced farmers should be accommodated as outgrowers and producers of other products and services to the ethanol plant while Green Fuel has to compensate farmers whose crops were destroyed to pave way for the project.
Local Government, Rural and Urban Development Minister Ignatius Chombo said officials from his ministry were in Chisumbanje last week to work on compensation modalities for the displaced farmers.
He said the total value of the compensation was not yet established but was around US$150 000 collectively.
Arda board chairman Mr Basil Nyabadza said he would not comment on the Cabinet recommendations until he read the full text of the recommendations.
“I do not want to say much because I have not seen the report except to say whatever decision Government takes, it should consider that viability of the project is the centre of future development,” he said.
Online Reporter