The Reserve Bank of Zimbabwe (RBZ) has met farmer organisations and stakeholders in the tobacco industry to ensure a smooth marketing season this year.

The meeting came after farmers voiced concern over the difficulties they encountered in accessing the foreign currency component of their proceeds last year.

The RBZ is next week expected to issue a statement announcing details of payment modalities for this year’s marketing season.

RBZ Governor Dr John Mangudya yesterday described the meeting with farmers and stakeholders in the tobacco sector as a success.

“We had a very positive meeting with representatives of the tobacco industry, including growers,” he said. “We want to ensure that tobacco producers are paid timeously. We also agreed on the format and substance of the communication with the tobacco industry; it’s coming out next week.”

Zimbabwe Tobacco Association (ZTA) chairman Mr Rodney Ambrose confirmed the developments, but could not shed more light.

“Indeed, we had a positive meeting with the RBZ, we are tidying up the contents of the agreement reached,” he said.

“A statement will be released soon. We can only comment after the statement is released.”

Farmers want the central bank to simplify access to the US dollar component of their proceeds, including a portion to be withdrawn in cash.

Last year, they were paid half their earnings through their Zimbabwe dollar accounts, with the balance being deposited into their foreign currency accounts.

Farmers have complained of “significant loss of value” of tobacco proceeds during the 2019 marketing season, which left most growers exposed to reduced profitability and inability to retool for the 2020 season.

The farmers want full resolution of the outstanding US dollar payments  from last season and the 2008 US dollar Tobacco Treasury Bills.

They want all their US dollar sales proceeds after US dollar loan repayments paid into growers’ nostro accounts by the contractor, not the RBZ, and to be paid through commercial banks at point of sale, on day of sale.

Farmers do not want limits when they liquidate their nostro accounts and are lobbying for a viable exchange rate when retooling, and they want to be able to convert a minimum of US$600 per sale from nostro funds to cash.

Last year, farmers delivered a record 259 million kg, up from 253 million kg in 2018 despite challenges that affected production and marketing of the crop.