Tobacco-Selling Season Expected to Start Today

Source from:  herald.co.zw Business Reporter 04/30/2008

THE 2008 tobacco-selling season, which was postponed from last week to this week, is expected to start today, the Tobacco Industry and Marketing Board has said. The official opening ceremony was expected to take place at 7.30am at the Tobacco Sales Floors. "The chairman of the Tobacco Industry and Marketing Board, Mr Njodzi Machirori, advises farmers and members of the industry that the 2008 tobacco-selling season will officially open on Wednesday 30th April 2008 at 7.30am," read part of the TIMB statement. It was, however, not immediately clear what had been agreed upon with regard to the concerns raised by tobacco farmers, which include the support price. Officials close to discussions that are taking place ahead of the opening said a position was likely to be enunciated during the official opening ceremony. "It is highly unlikely that an announcement will be made before then because it would need to be communicated to the whole industry and they might want to use the platform such as the official opening to communicate the position agreed upon," the official said. Apart from the support price, tobacco farmers were also asking for a new exchange rate as well as the settlement of the outstanding Foreign Currency Account shortfalls. Incidentally, tobacco farmers in Malawi are reported to have stopped delivering their tobacco in protest over the US$2,40 per kg that they were being offered. The farmers are arguing that the price is way below the US$10 per kg being offered on the international market. About 75 million to 80 million kilogrammes of flue-cured tobacco are expected to be delivered to the tobacco auction floors this season compared to last year's 73 million kg. Enditem