WITH the opening of the 2025 tobacco marketing season just two weeks away, the Tobacco Industry and Marketing Board (TIMB) has reassured growers that all payments will be done within 48 hours of delivery.
The reassurance comes as some farmers have raised concerns that in recent seasons, they were not paid within the stipulated two-day period.
TIMB public affairs officer Mrs Chelesani Tsarwe said according to Statutory Instrument (SI) 77 of 2022, growers must be paid within 48 hours of delivery.
“TIMB is guided by SI 77 of 2022, which stipulates that all tobacco growers are entitled to be paid within two days of completing sales. If for any reason, payments are delayed beyond this timeframe, the affected growers are urged to report the matter to TIMB for assistance,” she said.
SI 77 of 2022 [Chapter 18:20], Tobacco Industry and Marketing (Prohibition of Side Marketing) Regulations, 2022 states that: “Any contractor who fails to pay contract growers for contract tobacco received in terms of the scheme contract within two days of receipt shall be guilty of an offence and liable to a fine not exceeding level five (5) or to imprisonment for a period not exceeding six (6) months or to both such fine and such imprisonment.
Meanwhile, TIMB has challenged growers to desist from side marketing, as reports from the past show that non-and/or delayed payment cases were aligned to those who sell to companies they are not contracted to.
TIMB is maintaining that efficient and swift payments are possible where the growers’ banking details match the legitimate grower numbers in the contractors’ database for that company.
This has seen the board developing a new system for contract tobacco sales meant to establish a more representative minimum price this season.
The system will determine the following day’s minimum price based on the average price of all the tobacco sold, both at the auction floor and through contracts across all grades.
Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe said they were happy with the early start of the marketing season but appealed for payments to hit farmers’ accounts in the stipulated time.
“We are appealing to TIMB to ensure that growers are paid within the stipulated 48-hour period. We are also beseeching the authorities to incentivise growers to retool and make tobacco farming a lucrative business, as the Reserve Bank of Zimbabwe (RBZ) has lowered the foreign currency retention from 75 to 70 percent,” he said.
Mr Seremwe urged TIMB to ensure that all licenced contractors and buyers adhered to the compliance administration framework, pricing matrix and ethical practices to the grower.
“Most farmers are excited about the early opening of the season, as it will enable them to sell part of their tobacco and use earnings to finance harvesting and curing activities for the main crop.
“Growers are expecting good prices this year as the quality and weight of the crop is excellent,” he noted.
Tobacco Farmers Union Trust (TFUT) president, Mr Victor Mariranyika called on Government to come up with an export retention bonus for every tobacco farmer at the end of the season in view of the reduced forex retention percentage.
“I believe something similar to tax retention can go a long way to incentivise farmers. Past experiences in which the local currency portion was affected by time need to be addressed lest the increased ZiG component becomes a tax if it buys less foreign currency,” Mr Mariranyika said.
