The Sunday News
Harare Bureau
TOBACCO farmers that have delivered the golden leaf to the auction floors might have been prejudiced of up to US$20 million by surrogate contractors who are allegedly fleecing them through duplicating the work of tobacco off-takers.
Several unions representing tobacco farmers say they want the surrogate contractors to be jettisoned from the auction floors for short-changing farmers. 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 cost is subsequently passed on to the farmer.
Our Harare Bureau understands that there are more than 20 surrogate contractors operating at the tobacco auction floors in Harare. Although they were once removed, the merchants, who were then known as Class B Buyers, have resurfaced, albeit under a new name. 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.
If you calculate just this season alone, they are being paid around US$20 million and the money is actually coming from the farmers. I’m sure you are aware this is not the first time we are calling for the same to be stopped because around 2010 they were in this industry as pin-hooking or Class B buyers and we are seeing the same by another name”.
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 because we engaged the Tobacco Industry Marketing Board 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 TIMB to do away with the unscrupulous contractors.
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 last week 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.
