Tobacco to boost foreign currency inflows

A farmer harvests a tobacco crop in this file picture

Zimbabwe’s 2019 tobacco marketing season commences on Wednesday next week according to the Tobacco Industry and Marketing Board (TIMB) amid high expectations the golden leaf  will boost foreign currency inflows.

Traditionally, the marketing season kicks off in February, but was delayed this year due to late planting resulting from late rains experienced in the country.

The dry spell, which most parts of the country experienced since the beginning of the rainy season, also saw many farmers planting several weeks after normal time.

The normal tobacco planting time is between September 1 and December 31.

According to TIMB’s crop assessment survey carried around the country tobacco planting regions, the crop situation was “fair” with good yields being expect.

In a notice today the industry regulator said sales bookings will commence on 13 March 2019 while deliveries are accepted from 18 March.

“All stakeholders are advised that the 2019 Auction Tobacco Marketing Season opens on Wednesday 20 March, 2019.

“Contract Tobacco Sales will be opened on Thursday 21 March, 2019. Sales bookings will open on Wednesday 13 March, 2019 and deliveries accepted as from Monday 18 March, 2019,” said TIMB.

Tobacco is the country’s largest foreign currency earner.

The country’s foreign currency situation normally improves during the tobacco marketing season.

With Zimbabwe experiencing crippling foreign currency shortages, which has seen the country struggling to import adequate essential commodities such as fuel and medical drugs, inflows from the crop will improve the situation.

Now dominated by small-scale growers who benefited under the land reform programme since 2000, the sector produced 252 million kilogrammes of the golden leaf in the last season, the highest ever output in the history of Zimbabwe.

This year, the Government said tobacco farmers will be paid 20 percent of their produce in forex.

Tobacco is a top foreign currency earner and all in export industries are now permitted to run foreign currency accounts.

While the actual exports are done by the tobacco merchants who buy the crop from the farmers, the partial payment is seen as a way of ensuring farmers are able to buy imported inputs.

Tobacco farmers had warned failure by the Government to partly pay them in foreign currency could hurt production of Zimbabwe’s single largest foreign currency earner. Cotton farmers will also be paid 20 percent of the proceeds in hard currency.