Zimbabwe Mop-up Sales Scheduled

Source from:  tobaccoreporter.com Oct 7, 2008 10/08/2008

The first of two flue-cured mop-up auctions will be held in Harare on October 14, and on subsequent days if deliveries warrant continuing the sales, according to a report in The Herald quoting the Tobacco Industry Marketing Board (TIMB). The second mop-up auction is scheduled to be held on October 28, but it, too, will be extended until all delivered tobacco has been sold. In fact, the sales season could be extended beyond the scheduled mop-up auctions as was the case last year. The Herald reported that most farmers who hadn't already sold their tobacco were holding on to their leaf, some to get better prices but some in response to low cash withdrawal limits, high transport costs, diesel shortages and the exchange rate policy. However, the TIMB's acting chief executive, Dr Andrew Matibiri, said rising prices and the review of withdrawal limits were good incentives for farmers to deliver their tobacco once mop-up sales were held. Tobacco prices were said to have risen from around US$3 per kg to above US$6 per kg on the final day of normal sales. And Matibiri was quoted as saying, "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". Meanwhile, another Herald report quoted the Zimbabwe Tobacco Growers' Association (ZTGA) as saying that this year's tobacco marketing season had proved to be the toughest ever faced by farmers. The ZTGA chairman, Wilfanos Mashingaidze, warned that farmers had encountered serious problems that would threaten the tobacco sector if not addressed. Enditem