Tobacco firms ordered to clear farmers’ debts

TABORA: MINISTER for Agriculture Daniel Chongolo has directed companies owing tobacco farmers to complete all outstanding payments by October 30 this year.

“There is no reason for farmers to be delayed payment after selling their tobacco. All outstanding debts should be cleared on time,” he said.

The directive comes after the Tobacco Board reported that as of September 30 this year, 600,000 US dollars was still owed to farmers, representing four per cent of the total payments due.

Tobacco Board Tabora Zone Manager, Mr Albert Charles, said local companies with outstanding debts had been directed to complete payments by October 15, 2026.

However, Minister Chongolo set October 30 as the final deadline for all debts related to tobacco purchases to be cleared.

“All debts related to the purchase of tobacco should be paid by October 30 this year,” Minister Chongolo said.

Earlier, Acting Tabora Regional Commissioner, Dr Gerald Mongela said tobacco debts owed to AMCOS and councils were among the challenges requiring urgent action.

“Delayed payments affect the flow of money to farmers and other stakeholders involved in tobacco production and trade,” Dr Mongela said.

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Despite the challenge, the Tobacco Board has recorded an increase in the number of tobacco buyers, from three companies in the 2020/21 season to 18 currently.

Minister Chongolo said tobacco farmers, through their apex cooperative unions, were responsible for ordering fertiliser used in tobacco production.

He made the statement in response to farmers’ requests for the government to allow the Western Tobacco Growers Cooperative Union (WETCU) to directly import fertiliser for its farmers.

“The existing arrangement involves apex cooperative unions in the fertiliser procurement process, with the exercise being coordinated by leaders of the respective unions,” he said.

According to Minister Chongolo, the chairpersons of Mirambo Union and WETCU serve as the chairman and vice-chairman of the exercise, respectively.

He said the arrangement was aimed at ensuring tobacco farmers’ fertiliser requirements were met through a government-recognised system.