Tomato levy: Two Federal Ministries trade words over levy removal, farmers want return

 

The Federal Ministry of Agriculture and Rural Development (FMARD) has alleged its counterpart at the Investment and Trade of tomatoes cultivation retrogression through $1500 levy removal on every ton of the produce. Meanwhile farmers have also accused the free levy as an impediment to price competitiveness, thereby asking for its return to checkmate import. All these observations came up at the recently held HortiNigeria project meeting in Abuja.

FMARD representative, the Director of Horticulture Mr.Deola Lordsbanjou alleged the Federal Ministry of Industry, Trade and Investment (FMITI) of heeding to the tomato processors call to remove the levy saying such approval may have driven many farmers away from cultivation, adding that the free import levy has made price very uncompetitive for producers.

Stakeholders believed that money that may have been realized from the levy could have been used to develop the value chains of research, production and processing.

Also, the former director of FMARD Dr. Mike Kalu, wants the return of the levy by the FMITI back into 2017 policy of the tomato, saying it would serve as a protection for farmers' sustainable cultivation.

Kalu pointed further that Government and FAO interventions on tomato  production had become a waste to farmers as supposedly off takers (processors like Dangote) have all been allowed to embark on tomato concentrate importations without any levy, adding therefore that the money that is supposed to come through the levy as being  shortchanged.

Speaking, the FMITI representative, Mrs. Theresa Olaogun argued that the tomatoes levy removal was aimed at  being able to meet national shortfall demand, saying they only gave the opportunity to those companies producing paste in Nigeria to encourage backward integration.

According to Olaogun " in 2021 policy we decided to give allocations to those that have invested in backward integration of tomato to import concentrate only to meet our national shortfall "

Meanwhile, farmers and other stakeholders have disagreed with the decision taken by the FMITI, saying no consultation was done to carry such action, adding that levy removal would kill the sub sector value chains as farmers would be demoralised to plant.

The national secretary, Mallam Sani Danladi of Tomato Growers, Processors and Marketers Association of Nigeria pointed to FG to embark on delibrate policy similar to what she did to rice value chain to tomato, adding that levy removal on concentrate import would make prices very uncompetitive for farmers in the country.

Also, a farmer from Katsina, Alhaji Yazid Sadiq advocated for the return of $1500 levy on every ton of tomato concentrate as tariff pointing that the removal was a tactical way of killing farmers.