Parliament discusses Tobacco Contract farming chaos

HON. NYABANI: Thank you Madam Speaker Ma’am. I want to thank His Excellency the President, Dr. E. D. Mnangagwa, for supporting farmers, both commercial and communal so that no one is left behind. My question, Madam Speaker, is that last year many farmers were on loans from tobacco companies. They had to sell their output at $0.30 and now it is the farming season. These companies can no longer give them loans because they failed to repay the previous loans. Fertiliser is now at $60. Those who lend it are charging $100 per bag. What measures does the Government have to assist those people so that they can do their farming because 75% in this country are into farming? What does the Government have for those farmers so that they can benefit from Government inputs because the companies that were giving them loans are no longer able to do so? THE MINISTER OF JUSTICE, LEGAL AND PARLIAMENTARY AFFAIRS (HON. Z. ZIYAMBI): Thank you Madam Speaker Ma’am. I want to thank Hon. Nyabani for the pertinent question. Madam Speaker, as I understand it, there are farmers who entered into contracts with companies that loaned them inputs. The Government cannot intervene in a contract entered into by two parties. The Government will investigate through our Ministry of Agriculture, Mechanisation and Water Resources Development. What we should do in growing tobacco is what we call beneficiation, so that the price is not affected by the prices from other countries. Coming back to him, the Government has opened to people doing farming. If you are into farming and engaged a contractor, the Government does not have an obligation to add on to what you have received from the contractor because it is not part of the contract. It is the government's wish that farmers get better prices. What we want is that when we grow our crops and get them modified, then that end product is produced here or manufactured here that will benefit the farmer. *HON. NYABANI: My supplementary question is looking into the situation of the State. Is it possible that the Government can come up with a plan or with a bank that will lend loans to farmers at a rate of 5% because agriculture is the main domain and there are no other programmes that will enable farmers that those who did not have access to loans from companies get them from the bank at lower rates? Thank you. *HON. Z. ZIYAMBI: Thank you Madam Speaker Ma’am. From my point of view, Hon. Nyabani has two different questions. The first question was whether I have entered into a contract with someone who is supplying me with inputs and I give them my crops and then the crops are bought at a lower price. The other question is whether the Government should at least come up with a bank and give us a loan at an interest rate of 3%. The issue to do with tobacco is not about the rates but that worldwide tobacco was in abundance. There are some who did not have contracts; they grew their tobacco on their own. The previous year, tobacco was bought at a lower price as compared to previous seasons. Yes, the Government has a bank, AFC, that we are trying to approve so that it gives inputs to our farmers at a reasonable or good rate so that they are able to do their work. The issue to do with tobacco farming has nothing to do with the bank. Even those who are doing the farming on their own, the prices were not good because where it was being exported, those who were buying it had lowered the price because tobacco had flooded. *HON. MATANGIRA: I would like to thank the Hon. Minister for giving us a response that is fulfilling. What is it that has caused tobacco to be purchased