Elita Chikwati Agriculture Reporter
The curtain is expected to come down on the 2016 tobacco marketing season on August 5 with deliveries surpassing the initial target of 158 million kilogrammes. Since the beginning of the season on March 30, tobacco farmers have sold 184 million kg worth $541 million. Last season farmers sold 198 million kg. Tobacco Industry and Marketing Board communications manager Mr Isheunesu Moyo confirmed the closing dates and said mop-up sales would be held on August 23.
“The 2015 -16 season was characterised by drought, which resulted in farmers planting late and the crop heavily affected by the dry spell. “Lower reapings were affected by the El Niño weather phenomenon and this affected the quality of the crop. This had an impact on the average price which is two cents lower than last season.
“Upper reapings were saved by the late rains that came in January,” he said. Mr Moyo said changing climatic conditions had strengthened industry’s resolve to invest in irrigation equipment and rocket barns to improve the quality of the crop.
“TIMB has established revolving funds for drip irrigation and rocket barns,” he said. Most farmers said they were satisfied with the prices offered by buyers this season although some complained of the ceiling on the highest prices at the auction floor which has remained at $4,99 per kg for the past years.
Farmers also expressed anger at the resurfacing of corrupt activities at the floors and felt TIMB must do more to protect them and also put an end to underhand dealings. The farmers appealed to TIMB to take stern measures on perpetrators of corruption.
Recently The Herald revealed that some Class A buyers were buying tobacco at low prices for resale at the auction floors at a much higher price, while some leaf checkers were demanding kickbacks from farmers to influence floor prices.
The 2015-16 season also saw the introduction of the financial inclusion to tobacco farmers. Instead of getting their money in cash, this season growers were paid through bank accounts.
This created challenges during the early days as some farmers did not have bank accounts while other banks experienced cash challenges. The Reserve Bank of Zimbabwe had to elevate tobacco farmers to corporate clients making them eligible to withdraw up to $10 000 per transaction.
The financial inclusion resulted in TIMB deferring the implementation of the electronic marketing system to next season. The e-marketing system, which was aimed at increasing transparency in the marketing of tobacco at the auction floors, was expected to be rolled out this season.
A total of 23 buyers were licensed to buy on the auction floors while 15 merchants were approved for contract sales. TIMB statistics show that last season farmers planted 107 546 hectares of the golden leaf, while this season they managed 92 160 hectares.