Tobacco farmers deserve better prices

While there are claims that tobacco farming alleviates poverty in small scale farmers, some small scale seasonal farmers have remained poor even after being in the tobacco industry for many years.

Misuse of funds and poor prices of the golden leaf on the market are some of the factors that have been attributed to this demise.

Growing tobacco is not any easy task. The process is labour intensive and it takes the crop about 6 months from seedbed to marketing'

The majority of the tobacco farmers are small scale and they grow their tobacco on small pieces of land where farm workers are often family members including women and children. Their harvest is sold either under the contract system or the auction system. Under the contract system, tobacco farmers are obliged to sell their leaf to the contractors. Contractors give them inputs like tobacco seed, fertilizers and pesticides. Because of the contracts, farmers anticipate better prices for their crop. But because the prices they can get from their crop is decided by the leaf companies, which grade the leaves and set the price, tobacco farmers are often trapped in a vicious cycle of poverty and indebtedness. After paying their loans, farmers are often left in the red, having factored in labour costs and those of their family members.

Good quality of the tobacco crop should be paid accordingly while poor quality should be bought at deserving prices. Farmers, however, always complain that without bribing the buyers, their crop will be bought at pathetic prices despite the quality. Last marketing season and beyond, good quality of the golden leaf was bought for less than two dollars which is so discouraging. The poor prices will definitely not allow the farmer to settle his debts at the same time prepare for the next farming season.
 
Five dollars per kilogramme and above for good quality crop will be fair for the farmer. Good prices together with the 5% export incentive introduced by the Government last year will obviously motivate the farmer to increase production. Increase in tobacco production means more foreign currency in the country.

In an effort to improve the marketing process and reduce corrupt activities within the tobacco industry, Tobacco Industry and Marketing Board (TIMB) introduced tobacco e-marketing this marketing season. The new system is expected to go a long way in reducing illegal sales, theft and reducing side marketing within the tobacco industry. The electronic auction system of tobacco will also reduce the processing time for grower payments and is expected to eliminate illicit floor activities like ticket tempering. Another advantage of the system is that farmers are provided with real time data as the auction process happens and will, therefore, be able to tally their bales when they reach the dispatch section of the sales floor.

The opening up of the tobacco floors on 15 March is expected to boost the country`s foreign exchange earnings and this is expected to go a long way in addressing the liquidity crisis in the country.

Tobacco farmers are expecting to receive the 5% export incentive for the second time and are appealing to the Government to revise it to 10%.The export incentive was introduced last year by Government as a way of motivating and encouraging tobacco farmers to continue growing and increase production of the golden leaf which is one of the country`s highest foreign currency earner.

Despite heavy rains that pounded most parts of the farming regions, tobacco farmers are optimistic of a bumper harvest. This year the Tobacco Industry and Marketing Board (TIMB) recorded a 15% increase in tobacco farmers, rising from 70 412 last season to 81301 farmers this season.