Staff Reporter
….with farmers calling for better prices
Preparations for the 2022 tobacco marketing season are progressing well, with farmers expecting better prices and a review of the foreign currency retention.
Tobacco farmers were last season getting 60 percent of their money in foreign currency and 40 percent was converted at the prevailing auction exchange rate on the day of sale and paid in local currency.
Magunje farmer Mr Tainos Muronzi says better prices will assist them in purchasing farming inputs whose prices continue to skyrocket.
“We are doing our final preparations, curing our tobacco ahead of this year`s marketing season and we are expecting a review of the foreign currency retention up to about 80 percent so that we remain viable and be able to purchase farming inputs whose prices have since increased. Prices for fertiliser have increased and labour is now demanding foreign currency so we need more foreign currency for us to get back to the fields next season,” he said.
TIMB is currently embarking on a crop assessment to determine the state of the crop and help establish dates for the opening of this year`s marketing season.
Meanwhile, TIMB Chief Executive Officer, Meanwell Gudu recently revealed that decentralisation of tobacco sales would continue in 2022 as it brought convenience and reduced transport costs to farmers who sold their crop at their nearest towns.
“The decentralisation is very positive because it is in line with government policy on devolution. It has made it easier for farmers to market their crop instead of coming all the way to Harare. Now they can market in locations closer to them and therefore benefiting from reduced costs,” said Gudu, who added that decentralisation was now irreversible.
According to TIMB, Tobacco supports up to 160 000 households, accounts for more than 50 percent of agricultural exports and contributes 25 percent to agriculture GDP.
During the month of November 2021, tobacco was the major driver of export earnings for Zimbabwe at US$214.6 million followed by platinum group of metals at US$192.7 million.
Zimbabwe is the 5th largest producer of tobacco globally and tobacco production in the country has the potential to reach 300 million kilogrammes by 2025.
