Tobacco Deliveries Decline

Source from:  The Herald 07/30/2009

Tobacco deliveries to the auction floors have declined as the selling season draws to an end in a month's time. Most of the tobacco crop being delivered to the floors is from commercial and contract growers. Zimbabwe Industry Tobacco Auction Centre public relations officer, Ms Kudzai Hamadziripi on Tuesday said the congestion that characterised the greater part of the season had eased recently. "We are now getting between 600 and 800 bales a day and most of these farmers will have registered before delivering their crop," Ms Hamadziripi said. She said there was a trend where farmers waited for the last hour to sell their crop. "As soon as the closing date is announced, deliveries will pick up and there will be a rush to sell the crop. "Many farmers believe the mop-up sales do not offer better prices, so they would rather sell their crop before the official closing," she said. The tobacco selling season is expected to end on August 28 and so far the crop delivered to the floors has already surpassed the expected 42 million kg mark. Latest statistics from the Tobacco Industry Marketing Board show that a total of 44,1 million kg have been sold during the first 56 days of tobacco selling. This year's tobacco selling season opened on May 7 and unlike the past few seasons where farmers had to withhold their crop in anticipation of better prices, deliveries flowed consistently from day one. According to the growers, this season the payment system improved, with farmers getting US$1 500 on the spot, while the balance would be deposited into their bank accounts. Last season, tobacco growers complained of poor prices and an inefficient payment system. Some spent days camped at the floors, as they waited for their money while it was being eroded by inflation. Next season, tobacco production is likely to increase with seed sales having surpassed last's year's output by 67 percent. Enditem