Online Reporter
THE Government, through the Tobacco Industry and Marketing Board (TIMB), has directed licensed tobacco merchants who are yet to participate in the 2026 marketing season to start buying within two weeks or face regulatory action.
The directive comes amid concerns over low buyer participation during the opening days of the marketing season, which reportedly contributed to subdued prices on the auction floors. Early trading has been characterised by a limited number of active merchants, forcing some farmers to withdraw their bales in anticipation of improved prices.
In a letter addressed to non-participating buyers, TIMB chief executive officer Mr Emmanuel Matsvaire said the board had noted that some licensed merchants had not yet commenced buying the golden leaf.
“The Tobacco Industry and Marketing Board notes that your organisation has not yet participated on the buying floors for the 2026 tobacco marketing season,” reads part of the letter.
“To prevent the hoarding of licences and ensure that all licensed buyers contribute meaningfully to the price-discovery process at the auction floors, the board directs that a period of 14 days is given for you to have utilised your licence.”
He said merchants had also been asked to explain their absence from the market and outline their intended purchase volumes for the season. Early figures from TIMB show that auction sales have been slower compared to the same period last year.
Statistics for auction seasonal sales as of March 5 indicate that 626 742 kilogrammes of tobacco valued at US$1 786 308 had been sold.
During the same period last year, 1 245 242 kilogrammes worth US$4 172 791 had been sold. The figures represent declines of about 50 percent in volume and 57 percent in value.
The average price this season stands at US$2,85 per kilogramme, down from US$3,35 recorded during the same period in 2025.
Only seven of the 43 registered merchants have been actively buying tobacco since the opening day of the marketing season.
Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development Professor Obert Jiri said the tobacco market typically goes through a price-discovery phase at the beginning of the season.
“When the floors open, there is usually a price-discovery process where buyers and sellers test the market,” he said.
“As more merchants come in and volumes increase, the market begins to stabilise and prices start to firm.”
Prof Jiri said contract floors were currently performing better, and the authorities expect the auction segment to improve as more merchants enter the market.
TIMB spokesperson Chelesani Moyo-Tsarwe said the initial low prices were largely due to the limited number of merchants active when the floors opened.
“We expect that starting Monday the prices will be better as more competition will push prices,” she said.
“The low turnout was necessitated by the fact that we opened the floors earlier than the traditional opening dates. Following earlier adjustments in the opening phase of the season, tobacco is now being purchased at a good price.”
She urged farmers to deliver well-graded and properly presented tobacco to maximise returns. Meanwhile, tobacco deliveries at auction floors have reportedly improved this season compared to the same period last year, although the initial low prices have affected farmer morale.
Premier Tobacco Auction Floors operations manager Mr Samuel Garapo said some of the prices recorded during the opening days were significantly lower compared to last season.
“On the very low keynote prices, there has been a 45 percent drop in prices compared to last season,” he said.
Mr Garapo said despite the price concerns, more farmers were delivering their crop to the auction floors.
“Deliveries improved compared to last year, but I think the morale is going down.
“Our floors are full compared to last season,” he said.
He further said increased buyer participation could help improve prices in the coming days.
“We feel that participation of more buyers can even help raise the level of prices so that farmers get paid,” he said.
