Zimbabwe: Avoid Last Season's Chaos At Tobacco Auction Floors

Source from:  The Herald 02/06/2012

The 2012 tobacco selling season starts on February 15 with indications that a bigger crop volume will be auctioned at the sales floors this season. The Tobacco Industry and Marketing Board, which is the regulatory authority, forecasts that over 150 million kg of flue-cured tobacco will be sold against 131 million kg sold last season. Indeed, an increase by over 20 million kg calls for celebration given that production had tumbled to less than 100 million kg a few years ago, largely because farmers were still settling at their new farms following the land reform. While we are excited about the growth in production, we remain cautious about the ability of the auction floors to handle the volume. The chaos that marked last season's selling period is still fresh in the memories of many people. Farmers and other stakeholders in the tobacco industry expect an improvement in the way business is done at the floors and not scenes reminiscent of the last selling season. To farmers an improvement in the way business is conducted at the auction floors means good prices for their crop, no congestion and quick processing of payment. Some of the problems farmers faced were of their own making as they brought to the auction floors tobacco that had not been booked. Consequently, some farmers lost their tobacco to the rains while waiting in queues to deliver their unbooked crop. We are optimistic that farmers have already finalised their bookings so that we do not experience a repeat of events of last season. Last season most farmers suffered a lot as they slept in the open at the floors because they could not sell their crop as they had not booked it and in some cases the crop was poorly graded. It is good the TIMB has also played its part by licensing four auction floors - Tobacco Sales Floors, Boka Tobacco Auction Floors, Millenium Floors and a new player Premier Tobacco Auction Floors - to handle the expected 150 million kg of flue-cured tobacco. Every year farmers have lamented the fluctuation of prices, with the first days of opening always marked by good prices. Last season tobacco sales were suspended when prices tumbled to unimaginable levels. It is important for farmers to appreciate the operations of an auction system. Prices depend on the quality of the leaf on auction and that good quality leaf will ideally fetch a high price. Generally, the prices follow trends prevailing in the world market. We have learnt from previous lessons that the high prices on the first few days of opening of the floors are the reason farmers disregard bookings to flood the floors hoping to cash in on the good prices. We want to urge farmers to always book their tobacco and stick to the booking timetables to avoid having to camp at the floors for weeks to sell their crop. The TIMB has made booking and registering easier for farmers by decentralising their offices. Farmers can also use their mobile phones to make booking and registration arrangements in readiness to deliver to the auction floors. While farmers have been criticised for the chaos at the floors, we are convinced the administration should also shoulder part of the blame. It is disturbing that some tobacco bales went missing at the floors and were never found, yet farmers toiled to produce a crop and to reap the profits. We call upon staff at the floors to desist from stealing from the poor farmers and to shun corruption. The opening hours also need to be reviewed to allow farmers enough time to conduct their business. Farmer organisations should also play a role in educating farmers on preparing for the auction floors, in terms of grading, baling, quality and pricing so that farmers do not always believe buyers are only there to rip them off. Let us do everything possible that encourages tobacco production. Farmers and contractors do their part to grow the crop and likewise we would expect the buyers, TIMB and the auction floors to do everything possible to encourage the continued production of tobacco. We are renowned throughout the world for producing top quality leaf ideal for blending in cigarettes and we want it to remain that way for many many years to come. Enditem