Tanzania Orders Tobacco Buyers to Pay Farmers by Oct. 30

Tanzania’s agriculture minister ordered tobacco-buying companies to clear all outstanding payments owed to farmers by Oct. 30, saying there is no justification for delays after tobacco has been sold. Agriculture Minister Daniel Chongolo issued the directive Oct. 3 during a meeting with tobacco industry stakeholders in Tabora, where farmers, Agricultural Marketing Cooperative Societies, buyers, and the Tanzania Tobacco Board discussed challenges, including rising input costs, market access, outdated tobacco-drying technology, and delayed payments to cooperatives and local governments.

Chongolo also said the government has delayed announcing new tobacco input prices while negotiating lower costs for farmers. He directed stakeholders to hold discussions within 10 days to secure more affordable prices and ordered fertilizer to be distributed to farmers within two weeks. Tabora Regional Commissioner Gerald Mongella called for increased subsidies and faster progress on establishing a fertilizer factory in the region. Meanwhile, Tanzania Tobacco Board Tabora Zone Acting Manager Albert Charles said the number of tobacco buyers has increased from three in the 2020-21 season to 18, potentially giving farmers more market opportunities despite ongoing industry challenges.

Alliance One Tobacco Tanzania announced that it completed payments to growers and other stakeholders for the 2026 tobacco marketing season, disbursing TZS169.7 billion ($64.7 million) across the tobacco value chain, according to Daily News Tanzania. Growers received TZS154.2 billion ($58.7 million) of the total, with the company saying it had fulfilled its payment obligations for the season.