By Lerato Ndlovu
Tobacco farmers bas expressed concern over companies taking advantage of the lockdown restrictions to buy the cash crop at low prices. Most of both farmers and buyers continue to be denied access to the auction floor.
In a communique released by the Tobacco Farmers Union of Zimbabwe, companies are paying close to nothing for high quality tobacco resulting in the farmers suffering and disappointed with the government for turning a blind eye to such issues.
“Tobacco Companies are now taking advantage of the lockdown restrictions to buy the crop at low prices as farmers continue to be denied access to the auction floors during buying sessions. Companies are paying close to nothing for high quality tobacco, and this worsens the suffering of farmers who are already left with nothing after their sales due to the diabolic government fixed 25% exchange rate.
“Farmers are disappointed with the government which continue to turned a blind eye, ignoring the farmers plea to the ministry of finance to increase the fixed exchange rate which is currently stagnant at US $1- 25 RTGS yet the same $1 traded close to $90 on the parallel market”.
They stated that the companies buying from Boka auction floors and Tobacco Sales Floor are robbing the farmers of their time and labour put into yielding the cash crop resulting in them questioning the role of the Tobacco Industry and Marketing Board (TIMB) which has over the years turned from being a referee to a player.
“Farmers are complaining over the prices offered by companies buying at TSF and BOKA auction floors saying that its totally robbery especially considering the time and labour required by the crop, they are being stabbed by a double edged sword by the government and these companies working together to make the poor – poorer,” it read.
Farmers are also questioning the role of Tobacco Industry and Marketing Board (TIMB) which has over the years turned from being a referee to a player as they are also contracting farmers and buying tobacco making the prices that they set biased on benefiting them more”.
“Tobacco farmers are always on the losing side , and this will see a decrease in tobacco production next season as farmers are losing hope”.
The Union claims that TIMB and their colleagues who own assumed bogus contracting companies are benefiting more from tobacco farmers sweat as they are making large profits from the crop than the producer.
“The union is on alert watching activities on auction floors through its representatives, and at the end of the process we will expose and shame those companies and individuals who are stealing from and taking advantage of tobacco farmers”.
They urged the government to push the auction floors to allow a certain number of farmers to be in the floors so that they can make decisions that suit them in regards to their crop, and TIMB to address the issue of late payments.
“The government should push all auction floors to put up measures that allow the presence of farmers in auction floors during buying sessions so that their right to cancel and withdraw their bales if not happy with the prices is maintained.
“We call upon TIMB to address the issue of late payments by auction floors as a matter of urgency, a number of auction floors are taking time to fund farmers accounts, some accounts go for 2 to 3 weeks without being funded and if the farmers approach their banks they are told to go back where they sold their tobacco,” it read.
“These auction floor are spinning farmer’s forex in the black market resulting in delays in payments forcing farmers to sleep at auction floors exposed to the cold and risk of catching COVID-19. The union also want to remind the Minister of Finance Mthuli Ncube that it will not rest until the issue of the fixed exchange rate is addressed”.
