Tanzania: Tobacco Board Ordered to Review Trade Currency

Source from:  Tanzania Daily News 12/23/2013

Dodoma - TANZANIA Tobacco Board is being questioned as to why it use United States dollars in tobacco trading benefitting private companies while exploiting local farmers.

Responding to main questions by Sikonge legislator (CCM), Said Nkumba who wanted to know why tobacco trading in the country is being done in US dollars and that while farmers are resisting the arrangement some leaders in the sector strongly support it, Deputy Minister for Agriculture, Food Security and Cooperatives, Adam Malima said.

"Locally tobacco trading is done with US dollars following a stakeholders' agreement under Tobacco Council. The main reason is because much of the inputs are sold in US dollars," Mr Malima said.

Malima further noted that by using the US dollars, farmers are not exploited as was the case when they were paid in local currency but conceded that dishonest by cooperative leaders, agents and commercial banks denying farmers a fair share in the profits.

"Government has ordered the Tobacco Board in partnership with stakeholders including farmers to investigate this practice of using US dollars in tobacco trading," the minister noted.

In a supplementary question, Mr Nkumba wanted to know if government is ready to allow legislators from tobacco growing areas campaign against continued cultivation of the crop because it's benefitting companies and middlemen more than farmers.

But Malima said such a move is counterproductive as it will badly affect the farmers and the economy, saying after Tobacco Board investigations the ministry will move to rectify the problem. Enditem