Zimbabwe: Farmers Yet to Get Money, Inputs From Central Bank

Source from:  The Herald 09/23/2009

Harare - Tobacco growers who had their foreign currency retained during the 2007/8 season are yet to get the money and inputs that were issued under the Reserve Bank's "Debt-for fertilizer Swap". As a way of mitigating the plight of farmers, particularly those who were owed money by the Government, the central bank in April this year paid farmers using fertilizer manufactured under the 2008 Toll Manufacturing Programme. A Macheke farmer, Mr Titus Chibanguza, said he had been checking at his Agribank account but no money had been deposited. "I never got any communication on the money and had to come to Harare to inquire since I am preparing for the 2009/10 season," said Mr Chibanguza. "I want to start planting in October and I am no longer sure if I am going to get my money on time," he added. The farmer said he was not aware of the Reserve Bank's Debt for Fertilizer Swap. Tobacco Industry Marketing Board chief executive officer, Dr Andrew Matibiri said growers were going to be informed on the procedures to be followed for fertilizer swap. "In the public notice of April 27, the RBZ advised tobacco growers (with grower schedules provided by respective banks), that they would be given 50 percent of their foreign currency retention for 2007 and 2008 marketing seasons in the form of fertilizers. "The growers were supposed to approach banks, with which they lodged their claims to the retention," he said. In 2007, tobacco growers were entitled to 20 percent of their sales proceeds in foreign currency. The retention levels were subsequently increased to 25 percent during the 2008 tobacco-selling season. The foreign currency retention was merely entitlement and such tobacco growers had to buy back the foreign currency from the RBZ. In 2008, the RBZ had procured fertilizers, through toll manufacturing arrangements with local fertiliser companies such as Zimphos, ZFC, Windmill and Sables. Using the carry over fertilizer, wheat and tobacco farmers who were owed money by Government were being repaid as a way of supporting their current season's productive activities. Wheat and barley farmers were paid 100 percent redemption through fertilizer, representing full settlement of outstanding debt by Government while tobacco growers got 50 percent debt redemption through fertiliser. Tobacco growers with outstanding debt amounts of below US$1 000 per individual farmer were to have their debt redeemed in full. Enditem