Online Reporter
Elita Chikwati, Agriculture News Editor
AS the countdown to the opening of the 2026 tobacco marketing season on March 4 begins, farmers have called for a re-evaluation of the foreign currency retention policies to ensure they remain in business.
The farmers argue that last season’s payment structure of 70 percent in foreign currency and 30 percent in local currency (ZiG) had diminished their profits.
Zimbabwe Tobacco Growers Association (ZTGA) chairman, Mr George Seremwe, however, said growers were prepared for the selling season.
“Farmers are quite prepared. They are however expecting authorities to review the foreign currency retention which is currently at 70 percent foreign currency and 30 percent ZiG.
“We are willing to support Government programmes but all our production costs are pegged in foreign currency. Maybe the situation could improve if the mid-rate is increased,” he said.
Farmers complained that when they buy inputs, retailers quote prices in foreign currency and when there is an option to use ZiG the retailers use higher rates, which increases production costs and erodes profits.
Tobacco Farmers Union Trust (TFUT) president, Mr Edward Dune said farmers were not getting the real value of the 30 percent payment in local currency.
“The situation could improve if this ratio is applied throughout the whole value chain. We are buying fertilisers at 100 percent foreign currency. Most of our costs are in foreign currency. The 30 percent is therefore eroded by the exchange rates on the market. The 70:30 ratios should also be applied across all costs of production so that we do not lose much,” he said.
Mr Dune said most of the farmers with irrigated crop had finished reaping and curing while others were concentrating on the last reaps.
“The quality of the irrigated crop is good. Only the rain-fed crop was affected by false ripening. In future, we should invest in irrigation. Those with irrigation facilities resorted to supplementary irrigation to protect the crop from the dry spell,” he said.
The Tobacco Industry and Marketing Board (TIMB) on Thursday announced that this year’s marketing season would open on Wednesday 4 March for the auction sales while contact sales would start the following day, 5 March.
The official opening will coincide with the official launch of the Tobacco Value Chain Transformation Plan 2 (TVCTP 2).
The Tobacco Value Chain Transformation Plan 2 prioritises local financing, aims to boost value addition and seeks to increase production to 500 million kilogrammes annually by 2030.
This is meant to strengthen the economy and improve the livelihoods of small-scale farmers and their families.
This season more than 400 million kilogrammes of tobacco are expected to pass through the hammer.
Last season farmers sold 355 million kilogrammes of tobacco worth US$1,2 billion.
Some unscrupulous buyers have, however, been taking advantage of desperate tobacco growers and going to the farms to buy the crop using unviable prices.
Farmer organisations said they were educating their farmers on the dangers of selling their crop through informal markets as they will lose out at the end.
Zimbabwe National Farmers union president, Mrs Monica Chinamasa advised farmers to sell their crop through the auction floors where they would get better prices.
“We also urge contractors to decentralise floors and bring them nearer to farmers to reduce transport costs to the market,” she said.
TIMB said the industry had made progress in preparing for a flawless marketing season with focus trained on regulatory compliance, licensing of buyers and readiness of auction and contract floors.
TIMB public affairs officer, Mrs Chelesani Tsarwe stressed the board’s preparedness for the 2026 marketing season.
“We have engaged stakeholders, licensed floors and contractors and coordinated enforcement with relevant authorities to ensure a smooth marketing season.
“Regulatory and governance preparation considerations done are: strong monitoring tools of contract schemes implemented, strict adherence to payment timelines will be done and vigilant oversight of side marketing enhancement among other issues,” she said.
TIMB has licensed 48 contractors (merchants) for the 2025/26 production season, comprising 47 flue-cured tobacco contractors and one shisha tobacco contractor and 46 Class A Buyers.
“Three licensed auction floors will operate during the 2026 marketing season: Tobacco Sales Floor (TSF), Premier Tobacco Auction Floors (PTAF) and Ethical Sales Floor. All auction floors are compliant with key operational requirements, including security, banking facilities, clinics, IT systems, and backup utilities,” she said.
TIMB said cholera and Covid-19 prevention protocols would be enforced at all selling points.
“TIMB has deployed inspectors in all selling points, and a 100-day operational plan are in place to curb side marking.
These measures underscore the industry’s commitment to orderly marketing and grower protection.
“A projection of approximately 400 million kilogrammes is highly possible for the 2026 season reinforcing the country’s status as one of the world’s leading flue-cured tobacco producers. Overall, the outlook for crop quality and volumes is positive, with expectations of a competitive and orderly marketing season,” she said.
The crop outlook for 2026 is positive, supported by increased hectarage, improved crop establishment and sustained farmer confidence.
TIMB statistics show that 113 327 farmers have registered as growers and of these, 96 792 are contracted.
Farmers planted 164 536 hectares, an increase of 15 percent from the 143 025 ha planted during the same period last year.
Zimbabwe is the leading tobacco producer in Africa.
Londile Moyo