The tobacco industry is set for improved volumes of the golden leaf this year ahead of the start of the marketing season on the 7th of April, industry regulator, Tobacco Industry Marketing Board (TIMB) has said.
Tobacco is the country’s second largest foreign currency earner and its production was badly affected by poor rainfall last year although it got a reprieve from firmer prices.
However this year, a total of 125 000 hectares of tobacco is expected to hit the auction floors next month against 105 000 hectares planted last year.
“In terms of production, this year has seen an improvement in the amount of land planted. This year we have about 125 000 hectares planted from 105 000 planted last year,” a TIMB senior official said at a virtual Parliamentary portfolio meeting this morning.
“In terms of number of contractors, it’s almost similar to last year plus or minus 39,” he said.
Farmers delivered 178.7 million kilogram at the close of auctions in 2020 compared to 233.6 million kg during the same period last year.
However, due to firmer prices recorded last year, farmers earned US$460.7 million, against the US$447 million they got prior year.
TIMB says a total of US$ 350 million was financed off-shore through the licensed 39 contractors for the production of tobacco this year.
Still on licensing, the regulator has issued licenses to only three auction floors for this year’s marketing season namely, Tobacco Sales Floor (TSF), Boka Tobacco Auction Floors and Premier Tobacco Auction Floor.
“The auction floors have been inspected by TIMB and allowed to also operate in 5 regions outside Harare which are in Marondera, Rusape, Mvurwi, Karoi and Bindura,” said TIMB chief executive officer, Dr Andrew Matibiri.
Payment to farmers will abide by the Reserve Bank of Zimbabwe (RBZ) retention policy of 60 percent deposited in the foreign currency accounts and the 40 percent in the local currency.
