Zimbabwe: Tobacco Farmers Receive Backpay

Source from:  The Herald (Harare) September 29, 2006 10/08/2006

TOBACCO farmers have now started to receive their backpay after the Reserve Bank of Zimbabwe released in excess of $10 billion this week. Some tobacco growers had already started collecting their cheques yesterday, ending muted protests that were simmering at the country's three auction floors over delays in the payment of the bonuses. Initially, the central bank had promised to pay farmers with effect from September 26. Tobacco Industry and Marketing Board technical services director Dr Andrew Matibiri said farmers could now come forward to collect their backpay. However, he warned that the payment could take longer considering the large number of tobacco farmers. "Over $10 billion has been released," he said. "But we urge farmers to bear with us because we have a large number of cheques and growers to handle. So it might be a long process, but no problems have been incurred so far." The backpay is based on the prevailing exchange rate of $250 to the greenback. But only those farmers who sold their produce before August 31 deadline are eligible. Meanwhile, Dr Matibiri said tobacco worth US$972 000 have been sold during the two days of flue-cured tobacco mop-up sales. This brings the 2006 selling season's total to US$110 million. Government this week extended the tobacco marketing season until further notice to allow farmers to deliver their outstanding produce to the floors. According to the Tobacco Marketing and Levy Act Chapter 18:20 of 1996 and Statutory Instrument of 2000 farmers cannot carry their crop to the next season without special permission from the TIMB. "Any farmers who still have tobacco should contact TIMB so that special sales could be conducted," Dr Matibiri said. He added: "Any tobacco that remains unsold until December 15 -- which is the official deadline of any exchange of tobacco -- should, by law, be destroyed." The 2006/07 season is progressing well with seed sales currently at 320kg, enough to grow between 55 000 and 65 000 hectares. Enditem