THE call by tobacco farmers for fair treatment this marketing season deserves immediate consideration by authorities, particularly the Reserve Bank of Zimbabwe (RBZ), given that tobacco earnings are the mainstay of the economy.
The RBZ’s actions and policies can make or break tobacco farmers in this era of currency volatilities and shortages, just as such actions have had implications on the survival or collapse of other exporters.
In coming up with its payment model this year, the RBZ must be careful not to repeat the mistake it made in the last two years, which drove many tobacco farmers into destitution after working hard to nurture the golden leaf to meet export standards.
The RBZ must remember that the over 100 000 farmers are businesspeople who deserve to benefit from their sweat.
Farmers are in it for profit, they want to take care of their families.
They have ambitions too.
Just like the big corporations involved in contract farming, they want to expand their operations and grow more tobacco so that their earnings increase.
This is why last year they protested when they were forced to surrender 50% of their earnings to the RBZ.
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To add insult to injury, the RBZ forced them to liquidate the remaining 50% at a fixed rate of US$1:$25, which was a far cry from the US$1:$165 obtaining on the parallel market then.
It was by sheer luck that the RBZ was not confronted by national protests over its retrogressive policy.
Government should be grateful that the farmers have seen it fit to continue producing the golden leaf although odds are heavily stacked against them.
But they are not fools — they could have chosen to earn ease money through gold panning, but they realised that the backstage deals that are rampant in that sector won’t benefit the economy.
This is why the demands they have tabled deserve urgent attention.
They want the RBZ to increase the amount of foreign currency they retain to 80% from last year’s 50%.
Farmers have also demanded that there should be no limit on the foreign currency liquidation periods, which forced them to use their funds before they wanted.
Just make it happen, it makes sense to meet them half way because they are the backbone of this economy.
Given the perilous state of our economy at the moment, we cannot afford to kill the goose that lays the golden egg.
