Tobacco marketing season starts today

Herald Reporter

The 2023 tobacco marketing season officially opens today with farmers calling for discipline in the industry to eliminate unfair practices.

The contract floors will open tomorrow.

This year’s official opening ceremony will be held this morning at the Tobacco Sales Floor (TSF) where Vice President Constantino Chiwenga is expected to officiate.

This year two auction floors; Tobacco Sales Floor (TSF) and Premier Tobacco Auction Floors (PTAF) have been licenced by the Tobacco Industry and Marketing Board.

This season farmers are expecting TIMB to deal with the issue of middlemen who reap off growers.

Farmers are expecting prices to improve as the season progresses.

Mr Tamari Mariga of Domboshava said he is expecting to earn a lot of money from his 30 bales.

“I’m sure this time I am going to earn a lot of money from this tobacco. We worked very well as a family to ensure that we get better productivity. We are going to make it so that I continue with farming next season. I’m also expecting to use this money in winter wheat production,” he said.

Another farmer from Darwendale Ms Peggy Munaiwa said she is expecting to get payments on time so that she embarks on other productions which needs funding.

“Delays in payment can cause disastrous in other projects. 

“We also do other productions hence we are appealing for the authorities to ensure that we get payments on time, side marketing should also be addressed as well as corruption so that we continue sustaining in tobacco farming.

Tobacco Farmers Union Trust president, Mr Victor Mariranyika said all farmers were looking forward to a rewarding tobacco marketing   season.

“This year’s yield will be better than the previous season due to the implementation of best agronomic practises. In terms of the agronomic practices, the farmers have been and are looking after the crop very well, from seedbed to the auction, and we don’t expect any damage to the tobacco as a result of the rains. The area under tobacco has increased this year because of the incentives the farmers have received from Government,’’ he said.

Tobacco Farmers Union Trust vice president Mr Edward Dune said they were fighting and lobbying for viable prices to enhance sustainability.

“There should be level in terms of pricing. Let the price matrix reward on the basis of quality. No merchant should be a farmer’s favourite given that some are paying more for the same quality to avoid side-marketing,” said Mr Dune.

TIMB Public Affairs Officer Mrs Chelesani Tsarwe said the board has put in place procedures for an orderly and marketable season where all stakeholders across the tobacco value chain are satisfied.

 A number of growers have raised concern over the price cap of US$4,99 per kilogramme at the auction floors while prices at the contract floors surpass US$5 per kg.

This season, tobacco farmers will be paid 85 percent of their sales proceeds in foreign currency and the remaining quarter in local currency deposited into their RTGS accounts, converted at the prevailing auction exchange rate on the day of sale.

The 85 percent will be paid directly into the growers’ foreign currency accounts and this is treated as free funds, while the 15 percent local currency will be deposited into the growers’ local bank accounts or e-wallet

The bulk of the tobacco will be sold through contract floors as 95 percent of the crop is grown under contract system, while only 5 percent farmers are self-funded or are able to borrow money from banks.

The anticipated yield is on the back of good rains the country has been receiving in the 2022/2023 cropping season and improved hectarage following Government’s support.

In terms of adherence to Covid-19 regulations, farmers were expected to be fully vaccinated to gain access to the floors.

Those entering sales points must be fully vaccinated (two doses), with a booster (third dose) being an added advantage.

Farmers are also required to observe social distancing, practising hygiene and wear their masks properly in public transport vehicles and indoor gatherings.

About 160 000 farmers grow tobacco in Zimbabwe, which is then exported to over 60 countries across the globe.

Government has directed the Tobacco Industry and Marketing Board to ensure sanity in the industry and protect farmers from unscrupulous dealers.

This comes as there has been cases of late payments of farmers by merchants with some who were still owed money from the previous season.

In a document in our possession, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development has directed the TIMB to be compliant in terms of licensing of merchants during the 2023 tobacco marketing season.

“The Ministry has noted with concern the alleged malpractices related to non-payment of farmers, failure to pay prescribed levies by merchants and collusion to short-change farmers that have been reported in the tobacco industry.

“The Ministry has taken note of continued non-compliance of some industry players wherein the TIMB has failed to observe prescribed regulations on the issuance and renewal of licences, read the letter to the TIMB.

The board was thus directed to ensure thorough vetting of applications to ensure license renewals are based on fulfilment of set criteria.

“All non-complaint players should be dealt with accordingly within the confines of the rules, regulations and acts without exceptions. All applications by applicants with history of non-compliance must be rejected until full compliance is achieved.

“Ensure all growers are paid within the stipulated timeframes, this is not negotiable,” said the Ministry.

TIMB is expected to ensure that there is no manipulation of data contained in the stop order system.

The Ministry directed that all merchants should timeously remit all funds collected under the stop order deductions. “Non-payment of growers should never be allowed to occur under TIMB watch. The Ministry will continue to closely monitor compliance and adherence to governing frameworks.”

TIMB is expected to diligently follow up on these issues and ensure that sanity prevails in the tobacco industry for the ultimate upliftment of growers livelihoods and sustainability of the industry.

All outstanding farmer payments the Ministry stated should have been cleared before the start of the 2023 tobacco marketing season.

You Might Also Like

Comments