Chronicle Editor
Elita Chikwati, Harare Bureau
The Reserve Bank of Zimbabwe has met farmer organisations and stakeholders in the tobacco industry to iron out challenges experienced last year and ensure a smooth marketing season this year.
The meeting came after farmers raised concerns over the difficulties encountered in accessing the foreign currency component of their proceeds last year.
The RBZ is next week expected to release a statement announcing the details of the agreed payment modalities for the 2020 marketing season.
RBZ Governor Dr John Mangudya yesterday said the meeting with farmers and stakeholders in the tobacco sector was a success.
“We had a very positive meeting with the representatives of the tobacco industry, including growers,” he said. “We want to ensure that the tobacco producers are paid timeously.
“We also agreed on the format and substance of the communication with the tobacco industry; it’s coming out next week.”
Zimbabwe Tobacco Association chairman, Mr Rodney Ambrose, confirmed the developments, but could not give finer details of what was agreed at the meeting.
“Indeed, we had a positive meeting with the RBZ, we are tidying up the contents of the agreement reached,” he said.
“A statement will be released soon. We can only comment after the statement is released.”
Tobacco farmers this year want the RBZ to simplify access to the US dollar component of their proceeds, including a portion to be withdrawn in cash.
Last year, farmers were paid half their earnings through their Zimbabwe dollar accounts with the balance being deposited into their foreign currency accounts.
Most farmers faced difficulties in accessing their hard currency due to their failure to appreciate the processes involved.
Farmers have complained of “significant loss of value” of tobacco proceeds during the 2019 tobacco marketing season, which left most growers exposed to reduced profitability and inability to retool for the 2020 season.
The farmers want full resolution of the outstanding US dollar nostro amounts from last season and the 2008 US dollar Tobacco Treasury Bills.
They want all their US dollar sales proceeds after US dollar loan repayments paid into growers’ nostro accounts by the contractor, not the RBZ, and to be paid through commercial banks at point of sale, on day of sale.
Farmers do not want limits when they liquidate their nostro accounts and are lobbying for a viable exchange rate when retooling, and they want to be able to convert a minimum of US$600 per sale from nostro funds to cash.
Last year, farmers delivered a record 259 million kg up from 253 million kg in 2018 despite challenges that affected production and marketing of the crop.
The Tobacco Industry and Marketing Board is yet to announce the official opening date for the 2020 tobacco marketing season.
Online Reporter