Zimbabwe: Tobacco Floors Expected to Open Next Week

Source from:  The Herald (Harare) April 18, 2007 04/20/2007

TOBACCO farmers have started making bookings for delivery ahead of the 2007 flue-cured tobacco selling season, now scheduled to open on Tuesday. Initially, the auction floors were set to open on March 14, but the opening was delayed indefinitely following disagreements over pricing. A senior official with the Tobacco Industry and Marketing Board confirmed the floors would open on April 24. "They will open on Tuesday next week and reports that we have received from the auction floors are that bookings are already in progress," said the official. Farmers withheld deliveries in protest against the ruling exchange rate of US$1 to $250, which they said was "uneconomic" and would condemn them to ruin. The farmers said they needed a special rate, at least, that would give them enough returns to enable them to repay bank loans and to prepare for the next planting season. However, it emerged yesterday that there would be no special exchange rate, although growers would be entitled to a support price of $10 000 per kilogramme. According to a survey conducted by Herald Business yesterday, farmers have begun making bookings ahead of the selling season at the country's three auction floors -- the Tobacco Sales Floors, Burley Marketers Zimbabwe and the Zimbabwe Tobacco Auction Centre. An official at the Tobacco Sales Floor said a substantial number of farmers had already made their bookings, signalling that they had had a change of heart. "Bookings are now coming in and they are quite substantial," said a TSF official, who only identified herself as Fortunate. A Mr Mwale from BMZ said they had already received a number of bales from farmers. "Some are still calling us asking when the floors will open, but we have already received a number of bales here," he said. The selling season would have entered its fourth week this week if farmers had not held on to their tobacco demanding a special exchange rate. The Reserve Bank of Zimbabwe has, however, stuck to its "no devaluation" stance as contained in the January monetary policy statement. No comment could be obtained from the Ministry of Agriculture by the time of going to press. At least 80 million kilogrammes are expected to go under hammer this season. The 2007 forecast output, coming from a total planted hectarage of nearly 55 000 -- representing 99 percent of the target -- would be 45 percent higher on the 2005 figure of 54 million kg. Zimbabwe's tobacco production has been declining over the years for several reasons, notably inadequate preparations arising from in the late disbursement of critical inputs and unfavourable prices at the auction floors. The emergence of new and inexperienced farmers had also taken its toll on the quality of the "golden leaf". Enditem