This year’s Tobacco selling season prices have been low compared to same time last year, TSF General Manager has said.
The TSF General Manager Mary Matangaidze said prices were low since farmers were still selling prime tobacco.
“Tobacco prices are at a low since farmers are selling prime tobacco which is of poor quality. Deliveries remain low because farmers are failing to embrace the available payment systems.
“A survey done by Tobacco Industry and Marketing Board (TIMB) established that farmers will hold onto their crops in favour of favourable payment systems,” she said.
TIMB Technical Service Manager, Meanwell Gudu explained the various payment methods available to farmers.
“Under the new payment system, farmers receive 100% of their proceeds into their RTGS accounts, based on the prevailing bank exchange rate. Farmers have an option of receiving 50% of the proceeds or payments in their nostro accounts, of which RBZ will then credit the forex into their account within 48hours,” he said.
Economists have come out saying there are negative variants of 78.5%, with the highest price being US$4.46 and the lowest being US$0.20.
It has been noted that major auction floors namely Tobacco Sales Floor (TSF), Boka Trading Floor (BTF) and Premium Tobacco Floor (PTF), have so far bought a total of 2 644 522kg of tobacco worth US$4 625 722 in 11days. Compared to last year same time when they had bought 12 362 481kg valued at US$41 482 800.
TSF has so far bought a total 799 083 kg, BTF 187 299kg and PTF 257 258kg. TSF was offering the highest buying price of US$4.46 and a low of US$0.30 per kg, BTF highest buying price was US$3.70 with a low of US$0.20 per kg and PTF with the highest buying price was pegged at of US$4.30 and their lowest at US$0.20 per kg. These figures leave TSF as the highest buyer of the 3 major auction floors.
Farmers need to be made aware of the different payment methods to make transactions easier for both farmers and buyers. By understanding available payments methods available, tobacco farmers should soon improve their deliveries at the auction floors.