Debt relief for tobacco farmers
TOBACCO farmers who were contracted by the Tobacco Industry and Marketing Board (TIMB) have heaved a huge sigh of relief following the announcement that it is offering a 50 percent discount to debtors.
TIMB introduced the Tobacco Inputs Credit Scheme (TICS) in 2017 as a strategic empowerment initiative to support tobacco farmers, especially those not under contract arrangements, by providing critical inputs on credit for tobacco production.
However, many growers have struggled to repay their loans due to economic challenges, climate shocks and viability constrains.
This has led to reduced creditworthiness and hindered their ability to continue viable tobacco.
In response, TIMB acting chief executive officer, Mr Emmanuel Matsvaire said the rolling out of a comprehensive debt relief package aims to ease the burden and restore dignity, sustainability and growth potential among tobacco farmers.
“Key relief measures include a 50 percent discount, if TICS beneficiary pay their outstanding debts at any TIMB office by May 31, 2025. Relatives of deceased beneficiaries and elderly farmers (65+) are also being encouraged to visit their nearest TIMB office with their certified IDs to negotiate other discounts.
“Running from 2017/18 to the 2021/22 tobacco season, the TICS programme benefited 33 327 farmers with critical inputs. This debt relief measure marks a vital step in ensuring their continued participation in Zimbabwe’s tobacco sector and building a more resilient agricultural economy.
“TIMB remains steadfast in promoting viability, sustainability and growth in the tobacco sector, and calls upon all stakeholders to take advantage of this initiative for prosperous future. The debt relief comes in the middle of the 2025 tobacco marketing season, where growers are liquid and should take the opportunity to relieve themselves of legacy debt.
“By relieving this debt, we not only give these farmers a fresh start, but also strengthen the foundations of the Tobacco Value Chain Transformation Plan (TVTP), which seeks to improve livelihoods, promote local financing and expand production to 300 million kilogrammes annually,” said Mr Matsvaire.
However, farmers reacted with mixed feelings with some welcoming the debt relief, while others felt that TIMB, as regulator should not have in the first place contracted the farmers.
“They are just correcting their errors. TIMB is a regulator, and we were shocked when they made such an erroneous decision to compete with merchants. We are glad that they stopped their programme. Even if they come up with their so-called debt relief, and a farmer raises queries, who is going to be the adjudicator,” said an official with Tobacco Farmers Union Trust.herald
