Zimbabwe: Tobacco Growers Cry Foul Over Staggered Payment System

Source from:  The Herald 03/14/2010

Harare - Tobacco growers have complained about the US$2 000 they get at auction floors saying it is too little. The rest of the money generated from the sale of tobacco is being deposited in farmers' bank accounts and they can access it there. However, some farmers have said they want all their money in cash at the auction floors, or at least substantially more than the US$2 000 limit they are getting. Tobacco Industry Marketing Board chief executive officer Dr Andrew Matibiri said: "It is a directive from the Reserve bank of Zimbabwe to promote saving culture and we have no influence over the decision." Marondera farmer, Mrs Loveness Tsodzo said she did not have time to come into the city and get her money from the bank. "We are grown up people and the authorities should not make choices for us. "We have plans for our money and there is no problem in us getting cash on spot," she said. Mr Sweetwell Nemukuyu of Wedza added: "Time is so precious for us and once we delay some operations we lose at the end of the season." In past seasons, farmers watched as their Zimbabwe dollars became worthless while sitting in banks. This, some said, has seen them losing confidence in the banking system. However, other farmers have said the placement of cash limits at the auction floors is actually a blessing in disguise. One farmer said, "Some of my friends wasted their money on useless things and others were robbed or tricked out of it. "It helps that the money is safely in banks." Numerous dealers, trading in anything from clothes to cars, have set up base at the floors and compete to get money out of farmers. Meanwhile, growers who had not registered for the 2009/10 season have complained of the "complicated" registration exercise that has forced some to sell through their registered colleagues. TIMB is still registering and requires first-timers to provide proof, in the form of a letter from the headman and local Agritex officer, that they produced tobacco. TIMB also wants receipts of fertilizers bought. Mrs Annah Kaite of Marondera said: "I was not aware of the proof being required and I do not think I will be able to find the receipts for the fertilizers and chemicals." TIMB chief executive Dr Matibiri said farmers renewing their registration were not facing any problems since and had to pay a fine of US$10 and US$10 registration fee. "We are not turning down anyone intending to register, but the problem is that some farmers will not have enough cash to register and we carry out the process through a stop-order facility. "Growers registering for the first time can even write an affidavit stating that they produced tobacco during the 2009/10 selling season," Dr Matibiri said. According to the Tobacco Marketing and Levy Act, any grower or person who intends to grow tobacco should apply for registration. Registration ensures contracting companies are not swindled of the tobacco crop by unscrupulous farmers they would have supported through the season. The registration deadline is October 31 of every year but this season TIMB extended it to mid-March. Mobile registrations were stopped when the season opened on February 16, but growers can still register when they come to the floors. Zimbabwe Tobacco Industry and marketing Board public relations officer Ms Kudzayi Hamadziripi said, "We are moving around farming areas conscientising farmers of the registration requirements." From today TIMB will be carrying out sales on Tuesdays, Wednesdays and Thursdays. Enditem