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AFTER successfully introducing the affordable coal facility last season, the Tobacco Industry and Marketing Board (TIMB) and Hwange Colliery Company Limited (HCCL) will this time expand it to cover over 140 000 smallholder growers.
The initiative is meant to give farmers access to affordable coal packages and reduce tobacco production costs through discounted coal prices.
In an interview, TIMB public affairs officer Mrs Chelesani Tsarwe said the number of farmers benefiting from this facility was expected to scale up by between 50 and 200 percent this year after it was launched early on the backdrop of enhanced awareness campaigns.
“The negotiated coal price will be accessible to TIMB-registered growers with active grower numbers. The facility will ensure fair and transparent distribution and TIMB will be verifying farmer applications before forwarding them to Hwange Colliery for invoicing,” she said.
The special coal facility will bring relief to tobacco farmers by providing coal for tobacco curing at affordable rates, reducing production costs and addressing deforestation concerns.
The facility is expected to double or triple the output of last year’s 6 000 tonnes of coal procured with farmers saving at least US$15 per tonne of coal. All tobacco farmers are eligible to access the newly negotiated prices. The negotiated price will be valid with immediate effect and will be subject to review by November 30, 2024.
TIMB is also working to optimise supply chain efficiencies to address potential logistical challenges. This initiative is a significant step towards enhancing farmer viability and ensuring a sustainable and thriving tobacco industry. Zimbabwe’s tobacco industry is one of the country’s largest foreign currency earners, with the sector generating over $1 billion in export earnings last year.
By reducing production costs, the special coal facility is expected to increase farmers’ profit margins and contribute to the sector’s growth. TIMB’s efforts to address deforestation concerns through the use of coal for tobacco curing also aligns with global sustainability initiatives.
“We are working closely with our partners to ensure that the coal reaches the farmers in a timely and efficient manner and expect this facility to be a permanent feature, as we strive to address one of the board’s focal points of enhancing farmer viability,” said Miss Tsarwe.
With the sector expected to play a crucial role in Zimbabwe’s economic recovery, the special coal facility is a timely intervention to support tobacco farmers.
Online Reporter