Farmers still getting below $10k cash at auction floors Workers inspect tobacco at an auction floor

0903-1-1-TOBACCOElita Chikwati Agriculture Reporter
The Parliamentary Portfolio Committee on Lands, Agriculture, Mechanisation and Irrigation has urged the Reserve Bank of Zimbabwe to follow up on banks to ensure they do not limit cash withdrawals for farmers at the auction floors.

This follows tours by the committee to the auction floors, which revealed that some banks were offering farmers a maximum withdrawal of between $200 and $500 daily, forcing some growers to spend days camped at the premises waiting for their money.

The RBZ last week elevated tobacco farmers to corporates after they had demonstrated against the new bank withdrawal measures, which allowed them a maximum of $1 000 per day.

This allowed banks to offer farmers a maximum withdrawal of $10 000 per day.

The committee raised concern after visiting some banks at the Tobacco Sales Floor which were offering farmers a maximum withdrawal of $500.

The committee members said the RBZ should make a follow up and ensure the directive was being followed so that farmers received their money and return home on time.

The committee chairman, Mr Christopher Chitindi, said they were relieved by the RBZ directive to allow farmers to withdraw $10 000 a day but were now disturbed that things were different on the ground.

“We are touring tobacco auction floors this week to assess challenges being faced by farmers. We decided to see things on the ground after an outcry from farmers on the long processes at the floors and the involvement of middlemen in the marketing of the crop.

“We found out that some farmers are getting a maximum of $500 after selling their crop. However, there are some banks that have adhered to the RBZ stipulations for example Barcalys and POSB,” he said.

Some of the members complained that farmers were struggling to get their cash yet they were the ones bringing in the bulk of foreign currency.

On Wednesday the committee visited the TSF and Zimbabwe Leaf Tobacco.

TSF managing director, Mr Peter Mujaya, said the floor was concerned with vendors selling food.

“We do not have control over vendors operating outside the floors as it is the duty of the Harare City Council to deal with them. We have heard cases of middlemen but they do not operate within the auction floor. The illegal activities are done outside the premises,” he said.

At ZLT, the committee was impressed by the banks that were offering farmers a maximum withdrawal of $1 000 on the Automated Machine and $10 000 inside the banking halls.

The company expressed concern over some farmers who side market their crop after being sponsored.

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