Premier opens as MTC closes

Senior Farming Reporter
THE Tobacco Industry Marketing Board has reissued a trading licence to Premier Tobacco Auction Floor, while the Mashonaland Tobacco Company floors in Rusape were closed due to poor crop projections. The 2016 marketing season begins on March 30 and farmers are busy grading and bailing their crop ahead of the opening day.

Some contractors operating in Manicaland include Northern Tobacco, BAT, Mashonaland Tobacco Company, TSL and Tain-Ze Tobacco Company, among others.

MTC has for the past three seasons been operating its auction floor in Rusape, but gamers will not enjoy the benefits that came with it following its closure this season. MTC contracted farmers will have to deliver their crop to Harare.

TIMB chairperson, Mrs Monica Chinamasa, said they had now licenced three auction floors, namely Tobacco Sales Floor, Boka Tobacco Auction Floor and Premier.

She said they reconsidered their stance on Premier, which owes over $500 000 obligations in Government and tobacco levies following a solid undertaking to meet its obligations.

Tobacco industry sources said all auction floors were required to provide an insurance bond or collateral of $500 000 which was introduced after the collapse of Millennium Tobacco in 2012.

The statutory levies owed to TIMB were money that was deducted from growers, but was not forwarded to it, thereby crippling its ability to render adequate service to farmers who would have paid for this service.

Tobacco growers pay a levy, which is used to fund the operations of TIMB and Tobacco Research Board.

The tobacco levy is paid by buyers and it is supposed to be remitted to the Zimbabwe Revenue Authority.

“We have agreed on a solid payment plan that is guaranteed by properties whose value exceeds the amount owed. If they fail to go by the agreement, we will attach the properties and put them under the hammer to recover the debt,” said Mrs Chinamasa.

Premier Tobacco had obtained the licence last year and promised to clear outstanding obligation by September 2015, but failed to do so.

“We are not blood suckers, these are our partners in the tobacco business, and we want to work with them harmoniously, and we are hopeful they will honour their part of the bargain. They will be in business on March 30. Things are on course and there is no need to worry.

“We want to have healthy competition so that the farmers get fair prices for their crop. You do not get the best competition with two players only, and we are happy with the arrangements occasioning the re-entrance of Premier,” said Mrs Chinamasa.

She added that TIMB had 15 merchants for contract sales.

According to media reports, Premier obtained the licence on the strength of a letter written by a ministry (name supplied) that it was indebted to the auctioneer’s sister company and would pay once funds were available.

TIMB spokesperson, Mrs Isheunesu Moyo, also said Premier had been licenced.

“They have met our requirements for registration this season. Three auction floors Premier, Boka and TSF and 15 other contractors have been licensed. All the registered floors complied with TIMB requirements,” she said.