Zimbabwe: Tobacco Selling Season Ends in Two Weeks Time

Source from:  The Herald (Harare) 15 September 2008 09/18/2008

In less than two weeks, the curtain will finally come down on this year's tobacco selling season which has had its fair share of problems. As had become the norm with previous seasons, there were delays in the official opening of the season as issues that had haunted the previous seasons resurfaced. These included the support price, a new exchange rate as well as the settlement of the outstanding Foreign Currency Account shortfalls. A chronology of events would show that the official opening of the 2008 tobacco selling season was delayed by a week after the Tobacco Industry Marketing Board failed to get the requisite responses to farmers concerns. When the season was finally launched farmers were promised $70 million per US$ earned but as soon as the floors opened farmers blocked sales protesting against the opening price. Angry farmers tore up sales tickets and stood on tobacco bales to block auctioneers, while others tied up bales. The situation was only resolved after the Reserve Bank of Zimbabwe introduced a floating exchange rate that saw the support price falling away. This measure gave some stability to tobacco sales sessions at the three auction floors. Hardly a month later farmers raised concern in May about withdrawal limits and amounts that they were getting from banks, which they said, were too little. The RBZ responded by issuing special cheques in denominations of $5 billion, $25 billion and $50 billion and a special withdrawal limit of $100 billion for farmers which was above $5 billion for the rest of the banking public. Hardly a month later the same concern cropped up prompting the Minister of State for Policy Implementation, Mr Webster Shamu to arrange a tour of the floors by Dr Gono and a meeting with the farmers. During the meeting, the governor reviewed special cash withdrawal limits awarded to tobacco farmers from $100 billion to $200 billion. In addition Dr Gono also reviewed cheque limits from $500 billion to $900 billion. Farmers also got a reprieve when the Governor introduced a new currency last month and new withdrawal limits although these have now been overtaken by inflation. The issue of the withdrawal limit has since continued to be an issue with tobacco farmers who are continuously asking for a review and in one instance the farmers caused a two-day stoppage of sales at two of the auction floors in July. The issue of withdrawal limits presented a major headache for officials at the floors who had to contend with increasing numbers of farmers most of whom had to spend days and weeks at the floors while trying to access their money. The situation presented a time bomb as available facilities in terms of toilets failed to cope resulting in the farmers resorting to using the bush and sleeping in the open. Apart from withdrawal limits the season has also been affected by transport and diesel shortages that have seen some farmers, especially those in the small-scale sector failing to deliver their crop to the floors. Coal shortages also presented their fair share of problems for farmers as most are still battling to complete curing their crop. Farmers have, however, expressed optimism that the sector is destined for better times following the conclusion of a political settlement between the principals of the country's main political parties. "The signing of a deal is significant in that it will lay the groundwork for economic recovery. "It is in this recovery that the solutions to our problems as farmers lie," said one of the farmers. Another farmer said there should be more proper planning on the part of leaders in the sector and the TIMB before and after each season to ensure that all problems are ironed out well before the start of the season. "We have had to contend with the same problems year in and year out which shows a lack of planning on the part of those responsible and what we have been essentially getting are excuses which do not help anybody. "Reserve Bank authorities have in the past blasted TIMB officials for rushing to announce opening date without proper consultation and this should serve as a wake up call to the officials at the Board," said the farmer. Enditem