NutryFarm International’s indirectly wholly-owned subsidiary, Global Agricapital (Thailand) Co., which supplies durians, could have to compensate two of its customers a total of 33.4 million yuan (S$6.8 million) due to a delivery shortfall.
Disclosing this in a filing on May 27, the company said the finance manager of GAT had on May 23 sent in two settlement agreements that were entered into with Moonda (Beijing) Agricultural Science and Technology Co and China Railway Production Control (Chengdu) Industrial Co in January.
The one with Moonda relates to a purchase agreement to buy 200 containers of fresh durians between July and December in 2021. GAT only managed to deliver 44 containers, as it could not ensure the quality of the durians during shipment because of shipping delays and restrictions imposed by the Chinese customs to control Covid-19, NutryFarm said.
As a result, GAT has to pay Moonda 15.6 million yuan for the economic losses incurred. Among others, the customer faced a loss of market share and incurred costs from having to restore consumer confidence, NutryFarm pointed out.
Source: businesstimes.com.sg
