Tobacco firm pays Sh179.8 billion to contracted growers in 2023 season
What you need to know:
- Ephraim Mapoore, managing director of the company, stated that payments were in line with the government's directive to pay farmers in dollars.
Dar es Salaam. Alliance One Tobacco Tanzania Limited (AOTTL) has paid $71.9 million (about Sh179.8 billion) to more than 12,000 contracted growers who delivered the produce to the company during this year season.
Speaking after receiving an award during the 17th Manufacturer of the Year Awards ceremony on Sunday, the company’s managing director, Mr Ephraim Mapoore, said the payments were in compliance with the government’s directive to pay the farmers in dollars.
The company won the award in the category of large tobacco processing industries.
“We won the award not by coincidence or sheer luck, but because our company strongly adhere to best farming and business practices as well as closely taking care of the contracted farmers,” he said.
The firm said it had also paid $1.81 million (Sh4.6 billion) as fees to agricultural marketing cooperative society (Amcos) for 2023 while $780,000 (Sh1.95 billion) was paid as levy to tobacco cooperative unions.
The company also paid $1.72 million (Sh4.3 billion) as a crop cess, the amount which is usually paid directly to districts in which the company operates.
“These payments were made in compliance with the government’s recent directive that all tobacco payments to growers should be made within 14 days from the date of the completion of the market and all payments must be made in US dollar,” he said.
The company also thanked the government for connecting it with reliable electricity.
For many years the factory was running on diesel-powered generators in most of the production time.
Last year, pleaded with the government in Morogoro Region for electricity power line dedicated for the industry. The factory is receiving reliable power after the concern was addressed.
