Zimbabwe: Gov't to Release U.S.$167 000 for Tobacco Wrapping Paper

Source from:  The Herald (Harare) 9 June 2007 06/12/2007

GOVERNMENT will soon release the US$167 000 required for the purchase of tobacco wrapping paper to allow all farmers to deliver their crop to the country's three auction floors, a cabinet minister has said. The Minister of Agriculture Mr Rugare Gumbo said he would take the request to the relevant authorities for the release of the foreign currency needed for the importation of the paper. Speaking at a meeting with tobacco farmers yesterday Minister Gumbo said the request would surely be granted given the fact that tobacco was one of the country's biggest foreign currency earners. "The amount required for the importation of the paper is too little and Government will not hesitate to channel some of the tobacco proceeds to the acquisition of the paper. I was told that tobacco has raked in more than US$43 million and I see no reason why Government will not release part of it to secure the paper," he said He said Government would continue to give maximum support to tobacco farmers so that the sector can increase the production of the gold leaf from the current target of 80 million kilogrammes to next season's target of 120 million kilogrammes. "My Ministry will continue to coordinate the efforts of various government ministries, departments and relevant institutions to ensure a positive and facilitatory role in the continued growth of the industry. I am informed that the industry plans further growth from the current 80 million kilogrammes to 120 million kilogrammes during the 2007-8 season. Let us make thorough preparations and surpass that target. "As Ministry of Agriculture we want to ensure the continued viability of the tobacco sector through ensuring the timely availability of inputs and financing, lobbying for the provision of adequate tillage machinery and equipment and the provision of adequate and appropriate training and extension services for capacity building," he said. He said it was imperative to continue to grow the tobacco sector given the increasing demand for tobacco originating from this country. "Allow me to applaud the role played by the corporate sector in the continued improvement of the tobacco industry. I am informed that the corporate sector, among them parastatals, our local private sector and international companies including those from China, have sponsored 50 percent of the crop to be marketed over the next 90 days." Minister Gumbo thanked the banking sector for the contribution it made to ensure that this year's tobacco season was a success and appealed to the fertiliser and chemical manufacturers to do the same. He urged stakeholders to support farmers so that they could continue to produce a good quality crop that is in demand worldwide. "Tobacco is a highly technical crop so farmers should adhere to the tobacco calendar and agronomic practices. The Tobacco Research Board, our technical arm, continues to churn out high yielding disease resistant varieties with desirable flavours and styles popular with international buyers," he said. Speaking at the same meeting the chairperson of the Tobacco Growers Trust Mr Wilfanos Mashingaidze pledged to meet next year's target and put more than 100 000 hectares under tobacco. "As tobacco farmers we pledge to increase the total tobacco hectarage from the current 76 000 to 100 000 hectares for the 2007-8 farming season and have targeted more than 140 million kilogrammes of the crop which is one of the country's main generators of foreign currency. "I want to assure the minister that with the current levels of support from both Government and private sector, tobacco farmers will surely reach their target. The target is achievable and we hope to regain our status as a top tobacco producing nation in the world. He said the Government support price was motivating and had surpassed their expectations especially given the challenges besetting the economy. Recently, the tobacco sector reported that it had been hit by a critical shortage of tobacco wrapping paper, a situation that saw farmers buying the paper from informal dealers who are making a killing out of their desperation. Government has in recent years adopted a policy of awarding tobacco farmers a top up price rather than a special exchange rate as an incentive to growers and to ensure viability in the sector. A total of 80 million kilogrammes of tobacco is expected to be delivered to the auction floors this year. Enditem