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Tobacco farming makes comeback in Kanungu

Stephen Muneza Kagabo by Stephen Muneza Kagabo
November 16, 2016
in Agriculture, Business
2 min read
Tobacco farming makes comeback in Kanungu
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Giving up smoking is tough, but quitting the tobacco industry may prove even harder. The government has waged a very public war against smoking. Billion-shillings lawsuits, in-your-face anti-smoking campaigns and rigid marketing restrictions have reduced the number of smokers in Uganda. But there remained one glaring incongruity with its policy: allowing farmers to grow tobacco while urging consumers to quit.

There are an estimated 75,000 tobacco farmers in Uganda. The crop, a big earner for Ugandans, is widely grown in Kanungu, Arua, Koboko, Kiryandongo, and Masindi districts.

In 2012, Kanungu’s son, Member of Parliament Dr. Chris Baryomunsi (Kinkizi East) started and pushed through a law that prohibits smoking within 100 metres of any public place, workplace, and on public transport. It also bans tobacco advertising, promotion, and sponsorship.

Sadly in the same year, 500 farmers in Kanungu who were contracted by Continental Tobacco Ltd to grow tobacco got stuck with about 80 tonness of tobacco valued at sh2.5b after the company not purchased it. The problem was because the Ministry of Trade and Industry had revoked the license of Continental Tobacco citing recommendations from the Parliamentary committee on Agriculture, Animal Industry and Fisheries. Despite the fact that a kilogramme of tobacco was bought for UShs 4,000, or $1.60, while that of maize went for just UShs750 ($0.30), all seemed doomed. The agriculture ministry then said the Government had failed to find alternative crops to replace tobacco in areas where it is currently grown on a commercial scale.

The over 1000 Kanungu farmers in Nyamirama, Kihiihi and Nyakinoni sub counties saw it as a chance to get out of the industry for good.

Fast-forward to November 2016, it seems Kanungu’s tobacco farmers seem to be ready to go back to work thanks to Rob Kelsall the Managing Director, Uganda Tobacco Services. He asked for and was given permission from the relevant authorities to have a meeting with farmers in previously tobacco growing areas to discuss a number of operational issues touching on tobacco activities and how the crop can be revived.

A Monday 14th meeting potential tobacco farmers at Nyamirama sub county headquarters ended successfully with both parties agreeing a

Mr. Kelsall’s firm is a is a leading global independent leaf merchant and was incorporation in Uganda on 26 October 2010 (about 6 years ago) and now has approximately 200 employees.

Uganda Tobacco Services boss Rob Kelsall engages potential tobacco farmers in Nyamirama SC, Kanungu District on Monday. PHOTO/Bwana Marshal, Facebook.
Uganda Tobacco Services boss Rob Kelsall engages potential tobacco farmers in Nyamirama SC, Kanungu District on Monday. PHOTO/Bwana Marshal, Facebook.
Potential farmers listen attentively to Mr. Kelshell's proposals. PHOTO/Bwana Marshal, Facebook.
Potential farmers listen attentively to Mr. Kelshall’s proposals. PHOTO/Bwana Marshal, Facebook.

When contacted by TheUgandan about the development, the office of Minister of State for Privatisation and Investment Hon. Anite Evelyn said as government they were okay with Uganda Tobacco Services’ dialogue and intended business in Nyamirama considering they would help to fill the gap that was left by BAT after they closed shop in Kampala and moved to Nairobi. Government also revealed they had consulted widely and learnt lessons from Tanzania and Malawi and wanted to continue supporting investments in the sector.

The Government is also looking for investors to build a factory in Masindi, to process over 35 million kilogrammes of tobacco cultivated annually across the country.

But that future is still under threat after the government in May 2016 passed the bill that restricts the manufacture and sale of tobacco and encourage people to give up smoking.

In 2011, the government earned Shs87.5bn ($37.7m) in taxes from tobacco, making it one of the country’s top 10 revenue sources.

By Stephen Muneza Kagabo

 

Stephen Muneza Kagabo

Stephen Muneza Kagabo

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