Uganda: Tobacco Growers Told to Shun Funds

Source from:  The Monitor (Kampala) Joseph Olanyo 07/01/2004

Tobacco growers have been told to shun sponsorship from buyers if they are to compete effectively. The International Tobacco Growers Association (ITGA) President, Mr Albert Kamulaga, from Malawi recently told tobacco growers in the region to encourage competition to avoid monopolies. "Borrowing is not bad. You can borrow once or twice and the next season you are self-reliant. But the problem with Uganda is that farmers are perpetual borrowers. In Malawi, we are resisting the idea of being sponsored by buyers," Kamulaga said. He was addressing tobacco growers at the close of the 31st ITGA meeting at Kabira Country Club. The regional growers met to map out strategies of production, supply and demand. The forum is part of the ITGA Africa Chapter, which consists of 10 countries namely Zimbabwe, Malawi, Uganda, Kenya, Tanzania, Zambia, Burundi and recently Mozambique Malawi is one of the biggest producers of tobacco in African region. Zimbabwe, the market leaders in the region, has had a fall in the market due to the country's agricultural policies. The growers agreed to continue growing more tobacco despite the increasing domestic and international anti-tobacco campaigns. Government has already put a ban on cigarette smoking in public places. In the 2004/05 national budget, government increased excise duty on cigarettes from 130 percent to 150 percent. The adjustment was restricted to locally produced cigarettes. British American Tobacco Uganda has protested against the tax increase. Kamulaga advised the growers to maintain best quality and best marketing practices and to conserve the environment. Mr Aggrey Mtui, the general manager of Leaf Tobacco & Commodities (U) Ltd, said that Uganda's agricultural land is among the best in Africa because of the organic soils. Tobacco is a major cash crop and income earner in ten districts, namely: Masindi, Arua, Yumbe, Apac, Rukungiri, Mubende, Hoima, Kiboga, Lira and Kibaale. Enditem