By Felix Andrew
Tanzania Prime Minister Kassim Majaliwa has directed tobacco firms in the country to purchase the cash crop through local currency instead of US Dollar in order to support farmers and making them directly benefiting from what they are producing.
PM made remarks in his meeting with Tabora regional authorities and other tobacco stakeholders which held in the region to discuss about how tobacco crop contributes in the country’s development and other issues relating with the production of the crop.
Majaliwa said: “When a farmer sells 90 kilogramme of tobacco in term of dollar, once the value of shilling changes he cannot be compensated in accordance with the required value, something which is not good for the farmer,” he said.
The indicative price for tobacco price this season is USD 2 which is equal to between shillings 4,400 and 4,500 per kilogramme
Recently, some tobacco dealers raised concern about the board’s move to hike price from USD 2.2 to 2.48 per Kg which caused shortage of seeds supply to farmers.
In April this year, Premier dissolved Tanzania Tobacco Board and Western Zone Tobacco Growers Cooperative Union Ltd (WETCU) over failure to supervise the crop and embezzlement of funds.