TIMB suspends 8 contractors
THE Tobacco Industry and Marketing Board has suspended operations of eight companies due to non-remittance of stop order deductions.
Suspension will only be lifted when payments are up to date and failure to do will see the TIMB facilitating alternative markets for the affected farmers.
The suspended contractors are Voedsel, Agritrade, Chevron, Munakiri, Bindura Leaf, Mbaluk, Huruyadzo and Sub Sahara.
The suspension comes as the TIMB is working towards encouraging best practices with strict adherence to the law.
The board has also introduced stringent measures for farmers and merchants to safeguard the integrity of the contract system so that tobacco growers will not be short changed while contractors are also guaranteed of their returns.
TIMB communications manager Ms Chelesani Moyo yesterday confirmed that TIMB had suspended eight companies from operating.
“The fact that these companies have been failing to remit stop order deductions and pay farmers within the stipulated two days means they have financial constraints. TIMB is protecting the farmer and if the problem persists for over one week, TIMB will look for alternative markets for the affected growers.
“Suspension does not mean cancelled for now. It means do what you are supposed to do or comply with what your license was suspended for within a specified time frame or risk having your license cancelled for good,” she said.
Last month, TIMB suspended the operations of Golden Barn Tobacco and Dynamic Tobacco for the violation of stop order regulations, manipulation of the booking-in system and facilitation of side marketing.
The board also deactivated 438 grower numbers for suspicious trade. “As TIMB works towards encouraging best practices with strict adherence to the law, the board requires all stakeholders in the industry to adhere to set regulations as noncompliance will be rewarded with stiff penalties. Let us all work together to bring sanity to the marketing of Zimbabwean flavour tobacco,” Ms Moyo said.
The 2022 tobacco marketing season opened end of March with farmers expected to get viable prices due to the low volumes and high demand.
The highest price paid by buyers so far is US$6, 80 per kilogramme compared to US$6,70 during the same period last year.
This season, tobacco farmers will be paid three quarters of their sales proceeds in foreign currency andthe remaining quarter in local currency, converted at the prevailing auction exchange rate on the day of sale.
The 75 percent will be paid directly into the growers’ foreign currency accounts and this is treated as free funds while the 25 percent local currency component will be deposited into the growers’ local bank accounts or e-wallets.
TIMB has licensed three auction floors for the 2022 marketing season, and these are; Tobacco Sales Floor (TSF), Boka Tobacco Floors (BTF), and Premier Tobacco Auction Floor (PTAF).
The board also licensed 35 “A” Class buyers and 33 contracting companies.
Decentralised contract sales were licensed at five designated centres, which are Karoi, Mvurwi, Bindura, Marondera and Rusape.
The bulk of tobacco in Zimbabwe is grown under the contract system where farmers are offered inputs and the company buys all the produce from the growers at the stipulated price.
Upon the sale of the crop, the contracting company will deduct the money for its inputs from the total amount earned by the growers through a stop order system with the latter getting the balance.-The Herald
