Zimbabwe: Tobacco Continues To Shine As US$300 Million Paid To Zim Farmers

Source from:  The Southern Times 05/22/2018

Tobacco farmers have collectively earned about US$300 million from the sale of 101 million kgs of the crop so far, as the golden leaf continues to be one of the top foreign currency earners for Zimbabwe.

The tobacco marketing season is critical to Zimbabwe’s economy in providing the much needed foreign currency as the fiscus is starved of liquidity.

Zimbabwe is also the largest producer of tobacco in Africa and the third biggest exporter of tobacco in the world.

Latest statistics from the Tobacco Industry and Marketing Board (TIMB) provided on Tuesday show that tobacco farmers have been paid US$290 million, as the marketing season approaches its peak.

Farmers are expected to pocket more than $500 million from the tobacco sales during the marketing season which started in March and will close around September.

Part of the payment for tobacco deliveries is paid in US dollars as the Reserve Bank of Zimbabwe resolved that farmers will get a maximum of US$300 cash per sale.

In an interview on Tuesday, TIMB spokesman Isheunesu Moyo said: “So far we have paid US$290 million to the farmers from 101 million kilogrammes that was delivered to the auction floors.”

Figures provided by the TIMB reveal that the average price for 2018 is pegged at US$2.87, an increase of 3, 4 percent from US$2,77 recorded during the 2017 season.

Moyo said the prices were “encouraging for farmers”.

“The prices are encouraging, we also want to advise farmers to book before delivering to submit estimates and ensure they have working bank accounts.

"Booking and submitting estimates can be done over the phone and at regional offices hence farmers should not wait to do this until they come to Harare as this delays them.

"We also encourage farmers to utilise our staff at the floors and to visit our offices when they face challenges to redress", he said.

According to the TIMB statistics, 122 520 farmers registered to sell tobacco at the start of the season.

This is an increase of 45 percent from the 84 221 farmers who had registered during the same period last year.

The statistics also show that 32 025 growers registered for the first time compared to 16 464, who registered last year.

The increase in registration has largely been influenced by the need for farmers to obtain individual grower’s numbers so that they benefit from the introduction of foreign currency incentives.

Statistics from the TIMB last year reveal that the major export market for Zimbabwe’s tobacco was China which accounted for over $457,2 million.

Other export markets were South Africa ($75,6 million), Belgium ($65,04 million), Indonesia, ($40,5 million), United Arab Emirates ($16,8 million) as well as Russia, Bulgaria, Vietnam, Hong Kong, France, Netherlands, Germany, Holland, Sudan, Spain and Tanzania.

Tobacco is amongst the top three foreign currency earners in the country.

Zimbabwean tobacco is regarded as having one of the best smoking and flavour qualities hence it is well sought-after by major tobacco markets.  Enditem