THE Tobacco Industry and Marketing Board (TIMB) has announced new deadlines for licence applications and renewals, a move aimed at ensuring efficiency and addressing challenges in the tobacco industry.
Contractors must now renew or apply for buying licences by March 31, while the deadline for ‘A’ Class buying licences has been shifted to October 31 from January 31.
They were supposed to renew their licences by December 31 last year.
These changes, effective yesterday, align with TIMB’s broader strategy to create an orderly and efficient tobacco marketing system, the regulator said.
In a statement, TIMB said the adjustments were part of the Contractors Compliance Administration Framework, which contractors needed to adhere to before obtaining a licence.
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“This framework ensures that contractors provide adequate inputs and financing to growers, preventing exploitation through substandard or overpriced inputs,” TIMB said.
The purpose of the revised deadlines is to address challenges such as delayed input delivery and non-compliance with minimum input package requirements, which
have historically disadvantaged farmers.
“The review will address challenges such as delayed input delivery and non-compliance with minimum input package requirements, which have historically disadvantaged farmers,” TIMB said.
“Contractors must hold valid licences before the contracting season begins in June to facilitate timely input distribution.”
The new October deadline for ‘A’ Class buying licences will also allow buyers to secure funding in time for the marketing season.
“Renewing or applying for an 'A' Class licence by October 31 will ensure buyers are adequately prepared to purchase tobacco in the next season,” TIMB said.
TIMB has called on all stakeholders to adhere to the new deadlines, warning that non-compliance could disrupt operations.
“We urge all contractors and buyers to comply with the revised dates to ensure a seamless marketing process and avoid disruptions in their operations,” TIMB said.
According to TIMB, annual tobacco leaf production of over 300 million kilogrammes is projected this year, up from over 140 000 farmers growing the crop.
The board has revealed that over 95% of tobacco production is through contract farming, with 37 tobacco buyers actively buying from farmers annually.
The tobacco industry is valued at over US$1 billion, with an ambitious target to grow it to about US$5 billion this year.
