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Windfall for tobacco farmers, gold producers

30 Dec, 2016 - 00:12 0 Views
Windfall for tobacco farmers, gold producers JOHN-MANGUDYA

The ManicaPost

Samuel Kadungure Senior Reporter—

TOBACCO growers across the country have started receiving the five percent export incentive for the 2016 crop following the release of about $30 million to the Tobacco Industry Marketing Board (TIMB) by the central bank.

Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mangudya told The Manica Post yesterday that the central bank was in the process of doing the same for gold producers.

Like other exporters, tobacco farmers who delivered their crop starting from March 30, 2016 are entitled to a five percent export bonus.

The central bank came up with a 5 percent incentive for tobacco growers to promote production of the export crop.

The incentive is funded through bond notes, a legal tender that was introduced end of last month which trades 1:1 with the green back, being deposited into the accounts of eligible farmers after reconciliation by TIMB.

A total of 73 343 growers delivered about 202 million kilogrammes of gold leaf to the country’s auction floors during the 2015-16 season earning the country nearly $600 million.

“We have released all the money due to tobacco farmers. We have deposited $29.8 million to TIMB and we are in the process of doing the same for gold producers. The issue is now between farmers and TIMB – as the latter has to compile a schedule of what is due to every farmer and after reconciliation, instruct their bank to make the necessary payments,” said Dr Mangudya.

“Farmers should have started receiving their money by now. Tobacco farmers are the biggest beneficiaries of the export incentive because we want them to produce more. We should look after the goose that lays the golden eggs,” said Dr Mangudya.

TIMB board chairperson Mrs Monica Chinamasa also confirmed the development yesterday, saying they started processing payments last week.

“It is true that RBZ has released $29.8m which is the bonus due to tobacco growers and TIMB started processing the payments into eligible farmers’ bank accounts last week. Those growers who have no issues should have started receiving their payments before Christmas,” said Mrs Chinamasa.

Mrs Chinamasa added that some of the information like bank accounts and growers numbers submitted by some farmers were problematic and delaying the process, adding that growers who take long to receive their dues should approach TIMB with proper details.

“We are urging farmers who have not yet received their bonuses to approach TIMB because there are issues with the information they would have submitted. We need to verify their details such as bank accounts and grower’s numbers, among others, before payments are done. They should approach our offices for assistance,” said Mrs Chinamasa.

Tobacco is one of the biggest foreign currency earners along with gold and platinum – and the golden handshake from the central bank is meant to reward and motivate tobacco growers for their efforts in generating much needed foreign currency.

During the official closing ceremony of the 2016 tobacco marketing season, Dr Mangudya implored the tobacco industry to open auction floors earlier to ease cash shortages.

Last season, the floors opened on March 30, three weeks late as the season was delayed owing to the El Nino-induced drought, which resulted in late plantings.

Traditionally, the floors open in February.

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