Zimbabwe's Tobacco Farmers in Price Stand-Off

Source from:  newzimbabwe.com By Lebo Nkatazo 04/24/2007 04/25/2007

ZIMBABWE'S annual opening of the tobacco auction floors hangs in the balance after Agriculture Minister Rugare Gumbo failed to get government approval for the new prices on Monday. Tobacco farmers gathered Monday at a Harare hotel waiting for Gumbo's announcement of new prices and incentives, but the ceremony was cancelled after nearly two hours, when Gumbo did not show up. The scheduled opening of the tobacco floors Tuesday comes after its delay by more than a month as a result of a pricing dispute and inadequate packaging materials. The floors were initially expected to open on March 14, but farmers refused to deliver the golden leaf, demanding a special rate. Wilfanos Mashingaidze, a representative of the tobacco trade regulating authority, the Tobacco Industry and Marketing Authority (TIMB), dismissed the farmers when Gumbo failed to pitch up to make the announcements saying: "There is nothing to announce at the moment. The minister is still consulting. Let's meet at 7:30 am tomorrow at the auction floors. I wish you luck." Disappointed farmers, who spoke on condition of anonymity, said they are going to withhold their crop again, if the government does not come up with a new pricing structure, possibly coupled with the devaluation of the local currency. President Robert Mugabe is vehemently opposed to the devaluing of the local currency, a move that has cost previous ministers such as Simba Makoni their jobs. The US dollar remains pegged at 250 against the local currency, although it can fetch up of 14 000 on the thriving parallel market. The government's chaotic land reforms have seen a serious dip in agricultural production, with the country losing its position of being one of the top five tobacco producing countries in the world. Zimbabwe's troubles have seen neighbouring countries, notably Zambia and Malawi, making gains partly because of local farmers who fled to those countries and started new ventures. Enditem