Tobacco Farmers Get Inputs Worth $102bn

Source from:  The Herald (Harare) Leonard Makombe 02/02/2005

INPUTS worth $102 billion have been availed to tobacco farmers since the beginning of the 2004-2005 season. According to figures released by the Tobacco Industry and Marketing Board (TIMB), a total of 7 569 applications from farmers have been approved. "As at January 8 2005, a total of $102 billion worth of inputs were made available to tobacco farmers since the beginning of the season. "Of the $102 billion, a total of $78 billion has been drawn and an additional $6 billion has been allocated for the procurement of coal for curing. "There has been a total expenditure of $87 billion on the total amount of money that has been drawn by farmers on the approved applications. "Farmers are still going to be drawing down on this amount and we would expect that as time goes they would be drawing for coal and transport," said Mr Njodzi Machirori, president of TIMB. The latest TIMB figures show an increase of more than $8 billion on the $93,6 billion worth of inputs that were issued out by TIMB to more than 6 000 farmers countrywide as at December 17 last year. Support for tobacco farmers is aimed at laying the foundation for the rebound of the crop which has been sagging in the last four seasons. Tobacco production fell from 200 million kilogrammes in 2000 to 68 million kg last season. It is expected that tobacco production will increase to around 115 million kilogrammes this season. The tobacco support scheme through TIMB is in addition to funding arrangements made independently and privately by farmers and tobacco contractors. Contractors have since 2004 been supporting the production of the crop through the provision of inputs to farmers. There are more than 12 700 tobacco farmers in the country, the bulk of them small-scale producers. A total of 700 large scale tobacco farmers were registered during the 2004 tobacco selling season and produced an estimated 53 million kilogrammes according to the Zimbabwe Tobacco Association. Small-scale growers numbered an estimated 12 000 with a productive capacity of around 15 million kilogrammes. To date, a total of $232 billion has been raised through various means towards tobacco production during the 2004-2005 season. Some of the funds have been used to procure coal, a key input in tobacco production as it is the most con-venient fuel for tobacco curing. Tobacco remains one of the single largest earners of foreign currency for the country, raking in US$226 million ($1,3 trillion on the current auction system exchange rate) last year. This was realised from the exportation of 68,9 million kilogrammes of the crop. It is important to remember that the volume of tobacco exports in any season always includes a small proportion in carry-overs from the previous season. This is why 2004 exports amounted to 68,9 million kilogrammes, against a modest production figure of 68 million kilogrammes. Enditem