Tanzania orders tobacco-buying firms to clear outstanding payments to farmers by Oct 30

TABORA: THE Minister for Agriculture, Daniel Chongolo has given tobacco-buying companies until October 30, 2026, to clear outstanding payments owed to farmers, warning that there is no justification for delaying payment after the crop has been sold.

He issued the directive during a meeting with tobacco industry stakeholders in Tabora on October 3, 2026, where farmers, Agricultural Marketing Cooperative Societies (AMCOS), buyers and the Tanzania Tobacco Board discussed challenges facing the sector, including rising input costs, market access, outdated tobacco-drying technology and delayed payments to cooperatives and local government authorities.

Commenting on input prices, the minister said the government has deliberately delayed announcing the new rates to negotiate more affordable prices for farmers.

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Additionally, he directed stakeholders to hold discussions within 10 days to secure lower prices and ordered that fertiliser be distributed to farmers within two weeks.

Acting Tabora Regional Commissioner Gerald Mongella said tobacco is a major pillar of the region’s economy, calling for increased subsidies for tobacco farmers and faster progress towards establishing a fertiliser factory in the region to address input-cost challenges.

Meanwhile, Tanzania Tobacco Board Tabora Zone Acting Manager Albert Charles said the number of tobacco buyers had increased from three in the 2020/21 season to 18 currently, offering farmers more potential market opportunities despite the challenges facing the industry.

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