WINNIPEG – Some Canadian producers who did not receive payment from Eston, Sask. based Canadian Exotic Grains Ltd. have been compensated through the Canadian Grain Commission’s (CGC) Safeguards for Grain Farmers Program, according to a release from the CGC on Aug. 14.
Canadian Exotic Grain’s grain dealer license was revoked on April 26 after the company was unable to pay producers. On June 4, the Saskatchewan Pulse Growers posted on their website that they had been told by the CGC that Canadian Exotic Grains was no longer licensed.
A notice posted on the Deloitte Canada website states that as of July 17, Canadian Exotic Grains had filed a Notice of Creditors of Intention under the Bankruptcy and Insolvency Act. A court hearing was held on Aug. 8 in Saskatoon where the court granted time for Canadian Exotic Grains to file a proposal to Sept.28, amongst other relief.
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The CGC investigated a number of non-payment claims against the company, determining that there were four producer claims eligible for compensation.
These producers were fully covered under the security posted by Canadian Exotic Gains under the terms of their license. Licensed companies have to provide a security to CGC to cover amounts owed to producers for grain deliveries, if a company is unable to pay for grain that has been delivered, than the security is used to compensate producers.
However there were also a number of claims deemed ineligible because they were not submitted on time. To be eligible for compensation, producers had to submit their claims within 90 days of delivery or within 30 days from the date the cash purchase ticket or cheque were issued, whichever is less.
A listing on the Alberta Pulse Growers website describes Canadian Exotic Grains as a buyer and exporter of chickpeas and lentils.