Chunya District hit hard by lack of market for tobacco

From MERALI CHAWE in Mbeya

REVENUE collection for Chunya District Council in Songwe Region for 2016/2017 financial year has plummeted due to lack of market for tobacco.

Council Chairman, Mr Bosco Mwanginde said during the Budget session of the ward councillors meeting that they managed to collect 300m/- only from tobacco against the target of 1.8bn/-.
The councillors were discussing a draft for budget estimates for 2018/2019 financial year, where a budget of 36.6bn/- was agreed. He however said they were optimistic they would collect the tariff and the companies that are buying tobacco will pay the remaining balance. He said Chunya residents should be assured that all development projects will be implemented as planned.
October last year, Chunya District Commissioner (DC), Ms Rehema Madusa said the excess of over three million tonnes of tobacco lacked market because farmers produce extra tobacco while buyers outside the country reduces their purchases.
She said the company which is buying it offered to purchase a total of 11 million tonnes , but farmers produced more than 14 million tonnes and found themselves with an additional of 3.25 million tons without market. She said lack of market value was because tobacco buyers had reduced purchase of the cash crop.