LIVINGSTONE MARUFU
The Tobacco Industry and Marketing Board (TIMB) is pushing for the enactment of an amalgamated legislation as it moves to stem side marketing of the golden leaf, Business Times can report.
The stance comes amid revelations that some farmers are selling their tobacco to a third party in breach of a legally binding contractual agreement which states that contracted tobacco shall only be sold to or bought by the licenced contractor who provided inputs to such a grower.
TIMB head of inspectorate Saviour Muvirimi said there are a number of laws that curb side marketing and the Authority wants an “amalgamated piece of legislation that will effectively deal with side- marketing”.
“We are engaging all the stakeholders to fast-track the Statutory Instrument enactment,” Muvirimi told Business Times.
The TIMB Inspectorate, Muvirimi said, has started naming and shaming of all perpetrators that have participated in the side-marketing of the golden leaf.
Over 300 were named and shamed last season, with stricter measures expected to be put in place more perpetrators are expected to be caught.
TIMB said it would suspend side-marketing sales, growers numbers will be blocked and revoke licences from those involved.
In his state of preparedness for the 2022 tobacco marketing season, Muvirimi said the TIMB board has come up with various strategies to deal with the side- marketing apart from the push to have an amalgamated law.
These include the recruitment of informers in all farming areas in order to receive information on the presence of illegal buyers in communities.
“We will be making constant radar sweeps on frequency of sales on grower numbers with the view to identify grower numbers perpetuating side marketing,” Muvirimi said.
He said respective individuals will be called to explain these sales and if the authorities are not convinced, action to suspend the grower numbers and reference of such criminal cases will be reported to the police.
TIMB will increase its surveillance patrols in farming communities in order to identify makorokoza and errant licenced contractors engaging themselves in side marketing.
The Reserve Bank of Zimbabwe gave tobacco growers 75% forex retention threshold with the balance paid in the local currency.
Zimbabwe Tobacco Association CEO, Rodney Ambrose, said the immediate danger of the weak, inconsistent policy for tobacco farmers retention is that it may lead to increased side marketing.
“The 25% of the official exchange rate that is now half of the market rate is a further blow to the farmer. Immediately his ZWL$ return is halved in real terms,” Ambrose said.
Golden leaf has contributed around US$6.3bn since 2015 or an average of US$800m yearly. But, some farmers threatening to forsake the billion dollar industry.
