A lowered demand by buyers met an oversupply of 35%, and months later a new tobacco act was introduced. Having stiff penalties on overproduction, the new act has caused commotion on farmers, as when the act can be implemented.
Part of the Act reads, “where a grower willfully produces excess tobacco in contravention of his production quota or the contractual agreement with his buyer, as the case may be, the [Tobacco] Commission shall uplift the grower’s production quota and collect three quarters of the proceeds of the excess tobacco and remit the remaining one quarter to the grower”.
According to TC Chief Executive Officer, Kayisi Sadala, the new penalties would take effect from this growing season. The Act also says that excess tobacco yielded as a result of natural factors that are beyond the control of a grower, the TC shall uplift the grower’s quota but collect one quarter of the proceeds of the excess tobacco and remit the remainder to the grower.
A lowered demand by buyers met an oversupply of 35%, and months later a new tobacco act was introduced. Having stiff penalties on overproduction, the new act has caused commotion on farmers, as when the act can be implemented.