Tanzania's Minister for Agriculture, Daniel Chongolo, has directed tobacco-buying companies to settle outstanding payments to farmers by October 30, 2026. This directive was issued during a meeting with stakeholders in the tobacco industry, held in Tabora on October 3, 2026. The meeting brought together farmers, Agricultural Marketing Cooperative Societies (AMCOS), buyers, and the Tanzania Tobacco Board to discuss challenges facing the sector.
The stakeholders discussed several challenges, including rising input costs, market access, outdated tobacco-drying technology, and delayed payments to cooperatives and local government authorities. Minister Chongolo emphasized that there is no justification for delaying payment to farmers after the crop has been sold. He also addressed the issue of input prices, stating that the government has deliberately delayed announcing new rates to negotiate more affordable prices for farmers.
To address the issue of input prices, Minister Chongolo directed stakeholders to hold discussions within 10 days to secure lower prices for farmers. He also ordered that fertiliser be distributed to farmers within two weeks. This move aims to alleviate the burden of high input costs on farmers and make the tobacco industry more competitive.
The importance of tobacco to the region's economy was highlighted by Acting Tabora Regional Commissioner Gerald Mongella. He stated that tobacco is a major pillar of the region's economy and called for increased subsidies for tobacco farmers. Mongella also emphasized the need for faster progress towards establishing a fertiliser factory in the region to address input-cost challenges.
The Tanzania Tobacco Board has reported an increase in the number of tobacco buyers. According to Albert Charles, the Acting Tabora Zone Manager, the number of buyers has increased from three in the 2020/21 season to 18 currently. This increase offers farmers more potential market opportunities, despite the challenges facing the industry.
The government has taken steps to support farmers and improve the agricultural sector. Minister Chongolo's directive to tobacco-buying companies is part of these efforts. By ensuring that farmers receive timely payments, the government aims to boost the tobacco industry and improve the livelihoods of farmers.
The tobacco industry in Tanzania faces several challenges, including high input costs and outdated technology. However, with the government's support and the increase in the number of buyers, the industry has the potential to grow and become more competitive. The government's efforts to address these challenges and improve the industry's performance will be crucial in determining its future prospects.
Key points
- The government has given tobacco-buying companies until October 30, 2026, to clear outstanding payments owed to farmers.
- The number of tobacco buyers in Tanzania has increased from three in the 2020/21 season to 18 currently.
- The government has directed stakeholders to hold discussions to secure lower input prices for farmers and ordered fertiliser distribution within two weeks.
