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Message: [QUOTE="Nehanda, post: 26426, member: 2262"] Police have summoned members of an advocacy organization, Tobacco Farmer Talk, regarding loans extended to farmers ahead of the tobacco season starting next Wednesday. The group faces allegations of providing financial assistance without required approvals from regulatory bodies, potentially enabling side-marketing practices. TFT reportedly arranged a capital agreement with a major local financial institution to offer wholesale funding for its members who needed support with tobacco curing processes. The organization planned to create a revolving financing system that would help members both with current tobacco production and alternative crops after the season ended. Before TFT selected any members for participation, representatives from the Tobacco Industry and Marketing Board contacted the organization's chief executive, Phineas Mukomberanwa. Regulators expressed concerns about how this funding might lead to side-marketing and possible regulatory violations, ultimately referring the matter to law enforcement authorities. Inspector Luckmore Chakanza from the Harare provincial police confirmed that TFT provided financial assistance to farmers without securing necessary clearances from TIMB. Mukomberanwa answered questions with TIMB officials present during the investigation. The inspector explained that these loans were structured for repayment through TIMB's stop order system, but the association lacks proper licensing. As a result, TIMB plans to impose penalties for regulatory breaches as part of its responsibility to protect farmers. With tobacco sales beginning next week, industry participants have urged stronger regulatory oversight to prevent contract violations. Past incidents of side-marketing caused substantial financial damage to legitimate contractors who lost crops they had financed. Despite significant improvements in tobacco marketing over the past three years due to enhanced enforcement, stakeholders emphasized the need for continued regulatory vigilance. Such oversight remains essential for maintaining orderly marketing and reducing side-marketing activities that have previously undermined genuine investors, leading to poor financial recoveries and business failures in some cases. A representative from a contract company stated that offering financial help to farmers during the curing phase typically indicates attempts to acquire tobacco funded by legitimate contractors. These superficial financing arrangements aim primarily to access crops without making proper investments. The representative expressed serious concerns that similar schemes may be developing to encourage side-marketing, calling for heightened awareness from regulators and enforcement agencies. Industry forecasts suggest this season's harvest will range between 280 and 300 million kilograms. Zimbabwe achieved a record 297 million kilograms in 2023, nearly reaching the 300 million kilogram target established in the country's tobacco transformation strategy. Production subsequently decreased to 231 million kilograms annually due to drought conditions. Despite facing the most severe drought in more than four decades, tobacco performed better than other agricultural products, including traditionally drought-resistant cotton. [/QUOTE]

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