Zambia: Tobacco to be Priced in Kwacha

Source from:  Times of Zambia  04/10/2013

THIS year's tobacco prices will be pegged in the Zambian Kwacha instead of the United States dollars.

Government has directed that prices for the commodity in this year's marketing season should be quoted in the Zambian Kwacha.

Tobacco Board of Zambia (TBZ) board secretary Samson Muyembe confirmed in an interview yesterday that the Government had restricted the buying of the tobacco using the Kwacha.

By yesterday, tobacco marketing was expected to be opened and strictly managed by TBZ.

Mr Muyembe said TBZ did not see anything wrong with the decision made by the Government for tobacco prices to be in local currency.

"Government has directed us (TBZ) to be buying tobacco quoting the Zambian Kwacha and as TBZ we don't see anything wrong with the decision," he said.

Mr Muyembe has since advised the farmers to comply with the Government's decision of selling the tobacco quoting the Zambian currency.

But some farmers have condemned the move.

Chishala Chilufya said farmers would lose out because the exchange rate for the local currency kept on fluctuating.

Mr Chilufya said the move taken by the Government would discourage farmers from growing tobacco in the next farming season.

He accused TBZ of not providing enough information to the farmers over the changes that had been made in the tobacco buying exercise. Enditem