Farmers Stop Selling Tobacco

Source from:  herald.co.zw By Martin Kadzere 05/23/2008

ZIMBABWE'S tobacco selling season was yesterday plunged into yet another crisis after growers stopped selling their crop in protest over non-payment. Business grounded to a halt at the country's three auction floors - Burley Marketing Zimbabwe, Tobacco Sales Floor and Zimbabwe Tobacco Auction Centre as farmers insisted that sales would only resume after their grievances have been dealt with. Some disgruntled farmers claimed to have sold their tobacco 21 days ago but had not received their payments. A few farmers who got cheques said they were only paid $5 billion in cash while the remainder was deposited into their accounts. They, however, said the $5 billion was not useful as the bulk went towards settling food bills that they had accumulated during their stay at the floors. "What can we do with $5 billion. It all goes to settle the food bill that has accumulated for the period we were here," a disgruntled Rusape farmer said. TSL managing director Mr Wilson Gopoza acknowledged the crisis but stated the situation would improve once they started receiving agro-cheques. "It is a problem of cash but we hope once we start getting the special cheques from our banks, the situation will certainly improve," said Mr Gopoza. The Reserve Bank of Zimbabwe started issuing the cheques on Tuesday as it sought to bring convenience to the farmers during the marketing season. The agro-cheques are in $5 billion, $25 billion and $50 billion denominations. Shop owners were said to have taken advantage of desperate farmers willing to make bulk purchases by doubling or trebling prices while sometimes giving them an option to buy goods equivalent to the amount on their cheques. Furthermore, illegal cash dealers were making brisk business at auction floors by liquidating farmers' cheques at a commission of up to 70 percent. "It is the opposite now. Dealers are getting richer in a very short space of time at the expense of farmers who invested their money and time to grow tobacco," said Mrs Gertrude Chiparadze of Mazowe. A health hazard was also looming at the floors as toilets have gone for weeks unattended. Enditem