Tobacco growers receive 110bn/- in one month
TABORA: ALLIANCE Tobacco Tanzania Limited (AOTL) has paid 42.309 million US dollars (109.164bn/-) to tobacco farmers in Tabora in the first month of this season.
The payment was made to the company’s contracted primary societies to offset the farmers’ loans to the banks as well as earnings to the farmers.
Alliance One Managing Director Ephraim Mapoore said in 2023/24 season farmers experienced some challenges, mainly brought by El Nino rains that hampered them from maximising the farm’s output.
“We are aware that the farmers have had a challenging season…hence for the first time we introduced multiple incentives to cushion our growers during the challenging time,” Mr Mapoore said.
According to the tobacco buying companies’ regulations, buyers are obliged to pay farmers within 14 days of purchasing their tobacco.
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Alliance One is paying them within five days. Those who were paid are from Urambo, Kahama, Sikonge, Kigoma and Kaliua districts.
The Alliance One’s Spokesperson, Mr John Magoti, said the firm set aside up to 90 million US dollars for purchasing the crop this season.
The season started late April. “We will continue to pay our contracted farmers on time to ensure that they maximise the return of their investment to better their livelihoods,” he said.
Twende Pamoja AMCOS Chairman Ramadhani Kisena said they are pleased with the tobacco prices offered by Alliance One.
“The competition in the sub-sector is driving tobacco prices up. The earnings from the sales of tobacco enable farmers to expand their farms,” Mr Kisena said.
The AMCOS managed to produce some 700,000 kilogrammes of tobacco this season. It has sold 240,000 kilos worth 1.0bn/-. In 2021/ 2022, it produced 350,000 kilos while in 2022/2023 it produced 580,000 kilos.
The average price for a kilo of tobacco is 2.4 US dollars (6,240/-) and the Twende Pamoja AMCOS tops up another 102/- per every kilo as a motivation to its members.
