US$40m tobacco goes under hammer
Farmers have sold 15,9 million kg of tobacco worth US$40 million since the start of the 2021 marketing season on April 7, the Tobacco Industry and Marketing Board has said.
Latest statistics from the TIMB show that the bulk of the crop has been sold through the contract floors.
By Friday last week, farmers had sold 14,3 million kg worth US$36,1 million through the auction floors, while 1,5 million kg worth US$3,6 million went through the auction system.
The average price this year is US$2,50 per kg, an increase from last year’s US$2,28 per kg.
As was the case last year, sales are running under the strict Covid-19 guidelines developed by the tobacco industry with guidance from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement.
TIMB and the Reserve Bank of Zimbabwe jointly put in place improved payment measures to ensure tobacco growers get full value for their crop and were simultaneously paid within the shortest possible time.
Growers are this year getting 60 percent of their money in foreign currency, while 40 percent will be converted at the prevailing auction exchange rate on the day of sale and paid in local currency.
TIMB licensed 28 A class buyers and 39 contract buyers.
The board has also approved decentralised contract sales to be conducted at five designated centres; Karoi, Mvurwi, Bindura, Marondera and Rusape.
Government is working on increasing tobacco production to 300 million kilogrammes annually through the implementation of the Tobacco Value Chain Transformation Strategy.
The ministry coordinated the development of a Tobacco Value Chain Transformation Strategy to eliminate challenges facing the sector.
It is hoped that the strategy will enable the intensification of tobacco production by enhancing transparency and fair tobacco marketing, reform, restructuring and rebuilding of existing institutions to optimise tobacco value chain financing.
The strategy seeks to promote value addition and to facilitate the production of alternative crops to tobacco, to diversify revenues and assure industry sustainability in the face of climate change and anti-tobacco campaigns.-herald.cl.zw
