adminTHE Tobacco Industry and Marketing Board (TIMB) has refuted allegations that contract buyers are directly purchasing a crop that should be going to the auction floors.TIMB chief executive Andrew Matibiri said rumours that tobacco contract buyers are buying from ordinary farmers, thus compromising the viability of the auction floors, are untrue.
He said it would be impossible for registered contract buyers and sellers to buy or sell outside their contracted stipulations.
“The rumours are quite untrue. It is impossible for contractors to buy via the auction floors and vice versa, that is why we have registrations and regulations.”
He, however, said it is possible that some tobacco farmers may be resorting to selling their produce to contract farmers as to ensure receiving a higher price for their leaf that they would get on the auction floors.
“What is probably happening and is more feasible are regular tobacco farmers using their numbers to supply tobacco to contract farmers. The farmers are most probably bypassing the auction floors by using registered contract farmers to sell their tobacco,” he said.
Matibiri said although deliveries of tobacco on the auction floors have declined, they are not foreseeing the floors closing anytime in the near future. He, however, said the contract farmer deliveries are still robust.
“The deliveries of the auction floors have reduced but we are not yet even thinking about closing the floors. The floors will not be closing down anytime soon. The contract farmers’ deliveries are still as strong as ever,” he said.
TIMB has indicated that tobacco sales have earned close to $500 million with more deliveries still expected before the closure of the auction floors.
Tobacco prices range between $2,66 and $3,71 so far this season. — Bh24.
Online Reporter