Maravi

(ZIMPAPERS) No more tobacco for local companies

No more tobacco for local companies
Sunday, 13 February 2011 11:08 Top Stories
By Charlotte Musarurwa

INDIGENOUS companies have been kicked out of the Tobacco Marketing Board’s auction floors for the 2011 selling season following reports of unfair practices. The 12 companies that are alleged to have been ripping off farmers in past seasons will be excluded from the tobacco auctions that begin this week. Only international buyers will be participating.

This seems to be the end of the road for the indigenous companies that were introduced to the tobacco auction floors in the 1990s to enable them to familiarise themselves with the industry and create employment.

The 12 indigenous companies were graded Class B buyers and would compete to buy the tobacco from the floors with international companies regarded as Class A buyers.

The local companies would then be allowed to re-sell the tobacco to Class A buyers, who normally bought the crop for export.

However, last season farmers protested against the local buyers who they claimed were ripping them off.

They claim that the local companies influenced the selling price and bought tobacco from them at US$1,10 per kg, the same price given to international buyers.

However, the local buyers would then re-sell the crop to Class A buyers at US$4 per kg.

The Minister of Agriculture, Mechanisation and Irrigation Development, Dr Joseph Made, supported the ban, saying the local players were short-changing farmers.

“We will go by the decision made by TIMB.

“We cannot allow farmers to be exploited; we support them,’’ said the minister.
The suspended indigenous companies included Megalink, AP Metal and Crocraft.
Commenting on the ban, TIMB chief executive officer Dr Andrew Matibiri said the local buyers were short-changing growers and lacked transparency.

“The Class B buyers will not be operating for the 2011 selling season after taking into account the views of the farmers and those of the stakeholders,” he said.
A representative of the Tobacco Associa-tion of Zimbabwe, Mr Wilfred Nhemwa, said the local buyers also brought about chaos during last year’s selling season.

Labels: TOBACCO

posted by MrK @ 2:14 AM