Forex dealers rip-off tobacco farmers:

ILLEGAL forex dealers who are finding the going tough on the streets of most towns and cities are now invading farming communities where they are buying the golden leaf for a song and reselling it at the auction floors.

The forex dealers are enticing hard pressed small-holder farmers with hard currency and getting good crop at half price.

This is despite the fact that tobacco is a specified crop, governed and produced under the Tobacco Marketing and Levy Act Chapter 18:20 (Revised Edition 1996) – with the Tobacco Industry Marketing Board (TIMB) as the regulatory authority.

Each grower, contractor, buyer or merchant must be registered with TIMB to operate.

Tobacco growers are mandated to sell their produce to licenced buyers only.

However, the new merchants are not registered and are operating illegally.

The Manica Post understands that the dealers are selling the crop using other people’s growers numbers.

TIMB chief executive officer, Dr Andrew Matibiri said they are investigating reports of these unscrupulous middlemen who are either buying the golden leaf in hard currency or barter trading with groceries.

“We are investigating reports of middlemen moving around tobacco growing areas buying tobacco from farmers when they are not licenced to do so. This practice is illegal and punishable.

“Some of them were arrested and we are investigating more reports. Those caught will be taken to court. It is totally unacceptable and farmers should know this is illegal, it takes two to commit an offence,” said Dr Matibiri.

The dealers who spoke to The Manica Post on condition of anonymity said they employ ‘quality control experts’ to buy the golden leaf for them.

With tobacco farmers struggling to get money from their banks, many are opting to sell their crop at their farm gates, giving those with deep pockets an opportunity to pounce on them.

“Tobacco has good returns. We have engaged specialists to assist us in buying the crop from farmers. These are people who know the quality of the leaf and how much it fetches on the market. We are buying from small-scale farmers at half price, but we are paying them cash upfront,” said one dealer.

Tobacco Farmers Union Trust president, Mr Victor Mariranyika said the current set-up where farmers are compelled to sell their produce to registered buyers leaves them without any bargaining power.