Zimbabwe: Worry Over Delay in Opening of Tobacco Auction Floors

Source from:  The Herald (Harare) April 16, 2007 04/18/2007

THE Zimbabwe Association of Tobacco Growers has expressed concern over the delay in opening of tobacco auction floors saying it could hold-up farmers' preparations for the next tobacco-farming season. According to the association, land preparations for tobacco planting for next season are supposed to have been underway and this requires financing. Opening of tobacco auction floors was this year delayed following a deadlock between Government and tobacco farmers over the price of the gold leaf and the exchange rate of $250 against US$1. A similar scenario was also experienced last year following disagreement over the opening selling price. "It has to be noted that the delay in the opening of auction floors has a negative effect on the preparation of a new season as we should, according to tradition, already be focusing on land preparation soon after a previous crop's harvest. "Without a selling price that cushions the farmers, they will find it difficult to strike a balance between what they are to spend in the form of inputs and what they are likely to come up with. "Farmers cannot guess the amount of seeds they need as they would know if they can manage the hectarage from the profits they will make," said ZATG. ZATG added that the delay was also likely to hamper the set target of achieving approximately 150 million kilogrammes of tobacco from the next season's harvest. "It has been our aim to gradually enhance the annual output of tobacco each season and next year we were looking at achieving about 150 million kilogrammes from the approximate 80 million kilogrammes we expect to put under the hammer this year," said the association. However, the association was quick to point out that the action by tobacco farmers to hold on to their crop was not aimed at sabotaging the economy but to urge Government to review the selling price in line with the inflationary environment. "It is, therefore, necessary that instead of using a confrontational approach to solve this problem, amicable means be sought and compromises be taken to come up with a permanent solution to this problem. "What makes it more unfortunate is that this has become the trend, and last year, like the present scenario we experienced delays in selling our crop," said ZATG. Enditem