THE forex auction system which started to operate on Tuesday this week is not meant to benefit the poor small-scale tobacco farmers.
Most of the small-scale tobacco farmers in communal areas have already sold more than 80% of their tobacco, for they cannot hold onto it for long due to pressure from contracting companies and the need to pay labour, buy food and other necessities as tobacco farming is their only source of income.
Many can celebrate the reviewed exchange rate, but this will not change our situation as tobacco farmers as basic commodities and farming inputs continue to be charged using the parallel market exchange rate which is trading at US$1:$100.
The forex auction rate will always be below the parallel market rate, culminating in the continued suffering of tobacco farmers.
Most farmers in communal areas depend on tobacco farming as a source of income and they are disappointed by the payment system which was used this season.
