Tobacco marketing season opening set for March 13

Audrey Galawu

The Tobacco Industry and Marketing Board has announced the dates for the tobacco marketing season set for March 13.

In a statement addressed to stakeholders, TIMB acting chief executive officer Emmanuel Matsvaire said: “Contract tobacco sales will commence on March 14, 2024. A brief ceremony to mark the start of the 2024 tobacco marketing season will be held on March 13. The venue, tie and programme for the ceremony will be advised in due course”.

Speaking to Zim Now, tobacco farmer and expert, Phineas Mukomberanwa said the opening of the 2023-4 season is a welcome development, although most feel it is slightly delayed.

“There are certain issues that need to be addressed before the opening of the floors.

“There is also a very high level of anxiety due to the forex retention threshold among growers and certain tobacco contracting companies. The RBZ has been quoted as stating that the retention threshold is 75% USD and 25% RTGS (ZWL).

“This has brought a lot of uncertainty to stakeholders who fear a repeat of the 2019/2020, 2020/2021, and 2022/2023 tobacco marketing seasons. Stakeholders feel uneasy about this as liquidating their hard-earned 25% will subject them to massive losses. All their production costs were at 100% USD, and now they are forced to surrender 25% to the central bank.

“Furthermore, there is nowhere for them to use this RTGS as most shops, input suppliers and employees are demanding payment in USD. All they can do is purchase some groceries in formal shops, whose exchange rate is pegged at anything between 1:17000-20000, effectively meaning that the 25% is only worth 12% of its value.

“This means that growers and other stakeholders subjected to this retention threshold are selling their tobacco at around 87% of its actual value. We would have, therefore, wanted a situation where this thorny issue was resolved before the opening of the floors,” he said.

TIMB spokesperson, Chelesani Tsarwe said: “The early opening of the auction floors is advantageous in that it helps in curtailing side marketing, helps reduce post-harvest losses by goers who have limited storage space for their crop. It also allows growers to receive money for their crop early to meet their labour payments”.

Agronomist, Miles Mavengere said the past season has been tough for most farmers.

“The past season was difficult for most tobacco farmers due to lack of adequate rainfall. There is generally a low plant population and it is less than last season.

“Due to the dry spell, the tobacco has been affected by diseases and pests such as the mealybug and the budworm which affects the quality of the leaf.

“This also means demand will be high at the auction floors due low production. The demand for tobacco might not only be in Zimbabwe but globally as leading producers like Brazil have also bemoaned the lack of adequate rainfall.

“Farmers who have high grade tobacco stand to gain a lot due to the high demand,” he said.

He urged tobacco farmers to invest in irrigation and diversify in order to sustain themselves.