Tanzania to establish grower-compensation fund

Anti-tobacco campaigns being conducted by the World Health Organization were among factors to blame for a fall in leaf tobacco prices being paid for the crop on both local and world markets, the Tanzania National Assembly has been told.

But, according to a story in the TSN Daily News, the deputy minister for Agriculture, Food Security and Co-operatives, Godfrey Zambi, said that tobacco prices on the world market had been fluctuating due to a number of other factors including competition among major producers of the crop and the quality of the tobacco produced.

Zambi made these comments while responding to a question by Mpanda Rural MP, Moshi Kakoso, who had asked the government whether it would compensate local tobacco farmers for the declining prices on the world market.

In response, the deputy minister cited the WHO’s Framework Convention on Tobacco Control as being among the factors that had led to a reduction in the consumption of tobacco products and declining leaf tobacco prices.

“In the wake of these developments, the government will continue to look for markets in various countries to ensure our farmers are paid handsomely for their products,” Zambi said in response to the question.

According to the deputy minister, the government intends to work with responsible stakeholders to establish a special fund to compensate farmers when prices fall on the world market.