adminMarytise Vambayi Herald Reporter
The Tobacco Industry and Marketing Board (TIMB) which validated the value of inputs and quantities given to farmers has demanded proof from contractors that they gave farmers the agreed quantities, as it moves to curb corruption and fraud.
TIMB is the regulator of the industry and wants to ascertain if contractors complied with the required minimum support levels.
The TIMB chief executive officer, Meanwell Gudu, yesterday urged all tobacco contracting companies to supply proof of inputs distributed to farmers in the form of paid invoices for inputs or valid payment plans with suppliers, by end of this month.
Under new contract funding regulations this year, contractors have an obligation to support at a minimum package of inputs set at US$1000 per hectare and US$4000/ha for small and large scale growers, respectively.
The new funding regulations are expected to flush out errant merchants who have been inflating investment figures or register growers who would have not been supported.
About 95 percent of tobacco farmers are funded by contractors because the majority lack collateral such as land titles to borrow.
Under the contract arrangement, contractors recover their money from earnings through a stop order facility.
Mr Gudu, advised growers who did not get a full package of inputs that they will be de-contracted in the TIMB system and for those who did not receive full packages to contact the TIMB.
In the previous seasons there had been a spike in the number of contractors accused of underfunding farmers, but proceed to deduct substantial amounts.
Online Reporter