Zimbabwean Economy Loses Out on Tobacco Revenue

Source from:  Dumisani Muleya Harare Correspondent 05/10/2006

ZIMBABWE has raised a paltry $1,9m since the current tobacco-selling season opened two weeks ago as farmers continue to withhold the crop in protest over low prices. A Tobacco Industry and Marketing Board report said more than 1-million kilograms of the crop had been sold for $1899719. Although the amount raised to date is small compared to foreign currency receipts over the same period before the current decline in tobacco production, it was better than last season, when only $1191 777 was realised. Zimbabwe's tobacco output has dramatically declined with the virtual collapse of agriculture due to land seizures which began in 2000. The country is experiencing foreign exchange shortages, creating other problems such as shortages of food, fuel, electricity and basic commodities. The government has been offering incentives to farmers to encourage them to deliver their crop in order to increase foreign exchange generation. Tobacco growers who deliver produce to the auction floors will be paid a bonus of 35% of the total value of tobacco sold before July 31. Those who deliver their tobacco between July 31 and August 31 will get a 15% bonus. However, farmers are still complaining about prices. Reserve Bank governor Gideon Gono said the government would not yield to the complaints. Meanwhile there are conflicting reports about whether Zimbabwean authorities have invited white farmers back to Zimbabwe to resume farming. A Zimbabwean cabinet minister "categorically denied" on Friday that the Harare government was inviting some of the dispossessed white farmers to consider returning to their farms, which were once productive land. Earlier reports said the government had approached former Zimbabwean farmers, some of whom are in SA, Zambia, Malawi, Mozambique and as far afield as the UK and Australia, to consider returning to the country to resume farming there. Enditem