The ManicaPost
Samuel Kadungure
Senior Reporter
THE side-marketing of tobacco has become rampant, thereby forcing the Tobacco Industry and Marketing Board (TIMB) to block 448 grower numbers that sold more than five times in 13 days of the 2023 marketing season.
A total of 42 blocked grower numbers are from Manicaland.
Armed with Statutory Instrument 77 of 2022 which outlaws the practice, TIMB has deployed teams on the ground to bust syndicates that are fuelling side marketing of the golden leaf.
Repeat offenders now face jail.
The law prescribes that anyone who fuels the practice is liable to a fine not exceeding Level Five or imprisonment for up to six months or to both.
The culprit may also be ordered to compensate the prejudiced contractor three times the loss suffered.
This criminal practice is responsible for the loss of millions of dollars annually and has the potential to kill the tobacco industry.
TIMB official, Mr Rhyne Chikuni said those fuelling the practise will be fished out.
“We have blocked 448 grower numbers on strong suspicion of tobacco side marketing.
“We looked at the tobacco selling system and the sales points as we observed irregular activity and illegal practice. These growers are the alleged offenders.
“The blocked grower numbers had sold tobacco five times or more in only 13 days of the 2023 tobacco marketing season. It is illogical and cost-ineffective to bring 20 bales to market on a Monday then bring 10 on Wednesday and 15 on Friday during the same week, only to bring similar amounts of tobacco in the following week,” he said.
“We have blocked these growers from making more sales to make sure we only have legitimate tobacco farmers selling. The individuals with blocked grower numbers should approach TIMB with their sales sheets and prove that they are legitimate tobacco growers selling their own produce,” he said.
TIMB has since dispatched technical teams to physically inspect the respective farms to ascertain if they are legitimate growers.
“Those who prove that they are genuine farmers, we will unblock their grower numbers.
“This year we are on an accelerated drive to ensure orderly tobacco marketing and end tobacco side marketing.
“We are armed with SI 77 of 2022 as well as the Contractors’ Compliance Administration Framework to fight side marketing and there will be no sacred cows, we will leave no stone unturned.
“All tobacco stakeholders are mandated to fully utilize the TIMB booking system. A grower should book their tobacco for sale in advance as it helps us detect side marketing and stop it.
“We have also extended the arm of our inspectorate department to conduct random inspections of farms, sales floors and warehouses throughout the season. They will also conduct operations with law enforcement agencies,” he said.
TIMB will also carry awareness campaigns targeted at all tobacco stakeholders so that they understand the negative implications of side marketing.
Whistle-blowers will also be invited to give anonymous tip-offs.
A study conducted between March 2008 and June 2013 revealed that the low prices offered to farmers, poor yields and farmers’ greediness are the main drivers of tobacco side-marketing.
Contractors were also found to be charging high interest rates or administrative charges on loans extended to contract farmers.
The study recommended that contracting companies should offer above-market prices for contract tobacco, while Government spearheads training programmes for farmers to ensure higher yields.
Tobacco Farmers’ Union Trust (TFUT) president, Mr Victor Mariranyika said there is need to curb side-marketing through laws that empower and protect tobacco growers’ interests.
Mr Mariranyika said growers are often compelled to sell their produce to registered buyers who impose hostile conditions, thereby forcing many into side-marketing.
“Growers try to find means and ways of survival under hostile conditions imposed by off-takers. The first step should be to set a minimum entry price of tobacco which is production cost driven.
“The second step is to suspend current contractual agreements which are skewed against farmers and ensure a fair share of proceeds, which is sustainable.
“Most inputs supplied by contractors are far below sufficient input requirements and are overpriced, thereby leaving farmers heavily burdened,” he said.
Side-marketing is a form of contract default where a contracted tobacco grower sells their gold leaf to a third party in breach of a legally binding contractual agreement which states that the produce shall only be sold to the contractor who financed its production; or when an individual sells tobacco on behalf of another.
It is also a form of breach of the law when auction tobacco is sold other than through auction floors in breach of Section 40 of the Tobacco Marketing and Levy Act (Chapter 18:20).
