Zimbabwe: Tobacco Price Furore

Source from:  The Herald 05/21/2012

TOBACCO growers have expressed concern over prices that have remained static at all auction floors. Since the opening of the selling season, the highest price for tobacco has been pegged at US$4,99 per kilogramme. Farmers expected it to improve with the quality of the leaf. According to farmers, an auction should not have a limit as buyers compete to sell the crop. Latest statistics from the Tobacco Industry and Marketing Board show that the auction floors have a highest price of US$4, 99 per kg while the contract market has an average highest price of US$5,90 per kg. Growers feel that buyers are deliberately keeping prices constant at the expense of farmers. "TIMB should intervene and assist us. We should get value for our crop than for buyers to dictate for us," complained a farmer. Marondera farmer, Mrs Violet Chirandu, said although this season tobacco prices have been competitive, buyers had to increase them. "The prices are good but there is a price roof. Does that mean our crop is the same and those under the contract system are better than us?" she said. At the opening of the selling season, tobacco stakeholders noted that this year the crop was of high quality and was likely to fetch better prices on the market. Some growers said they were opting to sell their crop through the contract where prices were more competitive. Parliamentary Portfolio Committee on Agriculture, Lands and Resettlement member, Cde Edward Raradza, said it was not fair for buyers to deliberately keep prices at a standstill. He said the matter was going to be taken to the committee for further analysis. Meanwhile, tobacco deliveries have continued at the auction and contract market. By day 55, farmers had pocketed US$325,2 million from the sale of 83,5million kg at an average price of US$3,77 per kilogramme. This is an increase of 37,8 percent from the average price of US$2,74 offered same period last year. A total of 150million kg is expected to go under the hammer this season as the country moves towards regaining its status as one of the major tobacco producers in the world.Enditem