$150bn Released to Tobacco Farmers

Source from:  The Herald (Harare) Leonard Makombe 05/27/2005

A TOTAL of $150 billion has been released to tobacco growers through the Tobacco Industry Marketing Board (TIMB) and Agribank in an effort to boost production of the crop next season. TIMB, Tobacco Research Board, Agricultural Research and Extension Services and the Department of Agricultural Engineering Task Force, in liaison with some recognised growers' associations, have targeted production for 2005/06 season at 80 000 ha which has the potential to yield at least 150 million kg. This target will only be achieved if all players, including suppliers of inputs, are well prepared for this year's tobacco growing season. This is the first time in more than three seasons that growers have timeously received support for land and seedbed preparation. TIMB said the $150 billion was timeously released and would boost crop production. "In an effort to rebound tobacco production in the country, the Government, through the RBZ, has this year timeously released $150 billion towards seedbed inputs and land preparation. "Tobacco farmers, both old and new, are being advised to collect application forms from either TIMB or Agribank for early processing of loans. "To expedite the processing of the 2005/06 loans applications preference will be given to clients who are making noticeable progress in repaying their 2004/05 loans and growers with irrigation facilities are also urged to apply early to enable them to sow seeds in time for establishment of the early-irrigated crop," said TIMB in a statement. It is critical that the hectarage of the early crop is increased as this leads to a greater volume of high quality flavour tobacco, which is most sought after on world markets. Irrigated crop accounts for more than 60 percent of the total crop produced in the country and an increase in its production usually translates to increased production in the ensuing season. Zimbabwe is expecting around 100 million kg this season up from 68 million kg last year but this year's capacity is only half the country's full production capacity. At its peak, the country had a production capacity of 235 million kg and that accounted for more than 35 percent of the total foreign currency receipts. TIMB said farmers who benefited from last year's scheme should pay off their previous debts in order to get first preference in obtaining current loans and at the same time ensure continuity of the revolving fund. It added that disbursement of funds, which is largely dependent on 2004/05 loan repayments, would occur in due course. "The TIMB, which has successfully run the Tobacco Input Credit Scheme (TICS) for three years in succession, is highly confident that its experience gained over the years and its synergy with Agribank will further improve service delivery to the farmers. "Zimbabwe is one of the leading suppliers of flavour tobacco amongst other world producers. "For the country to produce the much-demanded style of tobacco, a strict adherence to time deadlines is needed. "Therefore, it is in our interests to produce quality flavoured tobacco, which will attract better prices and earn the country scarce foreign currency. "This is why funding facilities are being put in place early to achieve this objective," added TIMB. Tobacco remains one of the major foreign currency earners for the country and a drop usually translates to a stress on the availability of hard currency for critical areas such as raw materials and fuel. Enditem