Zimbabwe: Timb to Hold Mop-Up Sales

Source from:  The Herald (Harare) 6 October 2008 10/07/2008

THE Tobacco Industry Marketing Board will hold two flue-cured tobacco auction mop-up sales this month following the closure of the floors over a week ago. Mop-up sales, as the name suggests, are held in weeks preceding the closure of the floors to cater for sales of all outstanding tobacco. TIMB's acting chief executive Dr Andrew Matibiri said after consultations with stakeholders, it has been decided that the first flue-cured tobacco auction clean up sale will be held on October 14 with the next one following two weeks later. "Depending on the volume of deliveries, the clean-up sale may be continued for more than one day, until all delivered tobacco has been sold. "The next and final clean up sale will be conducted on October 28. Again, the clean-up sales may be conducted daily until all delivered tobacco has been sold," he said. He added that all growers should complete their grading and baling operations and deliver their tobacco before set dates of the clean up sales. "Growers who anticipate that they will not be able to complete preparing and delivering their tobacco by these dates should advise TIMB without delay. "Please note that in terms of the Tobacco Industry and Marketing Board Act Chapter 18:20 any person who has in their possession or under their control tobacco which remains unsold after 15th December 2008 must apply for a permit to hold that tobacco. "Applications for such permits must be lodged with TIMB before 15th December 2008. Permits will be issued under such terms and conditions as will be advised to each applicant," he said. Deliveries of tobacco to the country's three auction floors have been relatively poor compared to last season. By the end of the current season last week, only 45 million-kg had been sold compared to 70 million kg that were sold during the same period prior year. The 45 million-kg are a far cry from this year's target of 77 million kg, an indication that a lot of tobacco remains unsold. There have been indications that the season could extend beyond the mop-up sales as was the case last year. Most farmers were reportedly holding on to their crop due to a number of reasons ranging from low withdrawal limits, high transport costs, diesel shortages, the exchange rate policy while others are holding out in order to get the best possible price. Dr Matibiri however, said the combination of rising prices and the review of withdrawal limits were a good incentive for farmers to bring their crop to the floors once mop-up sales are held. Tobacco prices rose steeply last week from around US$3 to above US$6 on the final day. "The new maximum withdrawal limits will encourage farmers to sell their tobacco knowing that they will be able to get sufficient cash to return to their homes," he said. Enditem