Zimbabwe: Tobacco Selling Season Deadline Draws Closer

Source from:  The Herald (Harare) August 22, 2006 08/23/2006

THE curtain comes down on the 2006 tobacco selling next week amid concerns that some farmers might fail to meet the deadline. The Tobacco Industry and Marketing Board announced last week the season would close on August 30 and urged farmers to deliver their crop by that date. What this means is that farmers have only six days in which to deliver their crop to the auction floors. At least 52 million kilogrammes of the golden leaf are expected to go under the hammer this year, down from 74 million kg last year. Traditionally, the tobacco selling season is followed by a mop-up sale under which farmers who fail to deliver their crop by the deadline are given a chance to sell their produce. Unlike previous seasons which were characterised by protests against prices, the 2006 season has proceeded without hitches, thanks to the Reserve Bank's early delivery incentives. Over 75 percent of the golden leaf had already been sold by the end of day last week. According to figures released by the TIMB, 47,7 million kg worth US$49,6 million had been sold at an average price of US$1,90 per kg. About 9,3 million kg was sold at the Tobacco Sales Floor, six million at Burley Marketers Zimbabwe and 4,9 million at the Zimbabwe Tobacco Auction Centre. Nearly 25 million kg was sold through the contract system while farmers were paid $11,2 billion under the early delivery bonus scheme. Enditem