RBZ Awards Tobacco Farmers Backpay

Source from:  Business Reporter 09/18/2006

THE Reserve Bank of Zimbabwe (RBZ) has awarded tobacco farmers backpay based on the new exchange rate. The back payment would only be made to farmers who delivered their crop before close of the normal selling season on August 31. Tobacco Industry and Marketing Board (TIMB) technical services director Dr Andrew Matibiri said the directive came from the RBZ on September 12 adding that farmers would be able to access the money at the end of this month. "We hope that the backpay will be ready for collection as from September 26. "This means from the rate of US$1 to Z$101 farmers will be back paid at the rate of US$1 to Z$250 for tobacco sold before August 31. This applies to oriental, burley and flue-cured tobacco," he said. He added that tobacco seed sold to date was sufficient to cover 55 000 hectares, which was the season's target. "This year's season has been progressing well as seed purchases to date are sufficient to cover 55 000 hectares of flue-cured tobacco, which means we have already realised our target," said Dr Matibiri. A total 54,2 million kilogrammes of tobacco worth US$109 million was sold at the three auction floors during the 2006 selling season. Last week TIMB announced that there would be no extension to the burley-marketing season which kicked off in July and ended on Friday. The burley and flue-cured tobacco selling seasons were planned to begin simultaneously in April. But burley sales only started two months later following protests over poor prices. Meanwhile, Dr Matibiri said TIMB was yet to decide the dates for the burley tobacco mop-up sales. Enditem