Source: US$20 million lost at auction floors | Sunday Mail (Local News)

Tanyaradzwa Rusike

TOBACCO farmers that have delivered the golden leaf to auction floors, might have been prejudiced of up to US$20 million by surrogate contractors who are allegedly fleecing them through duplicating off-takers’ work.

Surrogate contractors are merchants that play the role of middlemen, but are allegedly abusing that privilege by duplicating the role of tobacco off-takers that sponsor them.

The contractors do not allow the farmers to put their tobacco under the auction system. The result is that the same quality of tobacco which is sold for say US$2,50 at the auction system, can be sold for less than US$1,50. This means the farmers are losing out on potential earnings as the surrogate contractors unilaterally determine prices while undermining the auction system.

Explaining how the surrogate farmers are fleecing farmers, Tobacco Association of Zimbabwe president, Mr George Seremwe, said:

“They are eating into the farmers’ pockets because what they are doing is only for a commission.

Mr Seremwe said licensing of the surrogate contractors is tantamount to bringing back the banned Class B tobacco buyers via the back door.

“These surrogates are causing chaos in the industry. Farmers are being duped.

“We don’t see their relevance and we now suspect that there is something fishy going on. We engaged TIMB on the matter and we agreed that they be removed and we feel they should not be allowed to come back.”

Zimbabwe Progressive Tobacco Farmers’ Association president, Mr Mutandwa Mutasa, implored the Tobacco Industry Marketing Board (TIMB) to do away with the unscrupulous contractors.

“We once advocated for the removal of Class B buyers and we are grateful that they were removed, but now they have come back in another form as contracting companies. They were given contracting licences and for us it is just the name that has changed.

“These surrogate contracting companies are eating into our profits and they should be removed,” he said.

A tobacco farmer from Mvurwi, who asked not to be named, said:

“We are coming here almost every day, asking for our money  and they say they have deposited it in the bank. When we go to the bank they would have deposited just US$100 yet you would have delivered tobacco amounting to US$5 000”.

Another farmer, Munyaradzi Amwali from Nyabira, said:

“We did not receive any inputs from these contractors, but they don’t want to give us our money. I delivered my tobacco on June 3, but until now, I have not received anything”.

TIMB Public Relations Officer Ms Chelesani Moyo last week said they were investigating the issue.

She said the surrogate contractors had promised to clear what they owe to the farmers by Thursday and the TIMB would continually monitor them.

Latest statistics from the TIMB show that tobacco worth US$480 million has been delivered to the auction floors to date.