Tobacco auction floors close next week

Grace Mahora-Herald Reporter

This year’s auctions for flue cured tobacco close next week, with farmers commending authorities for better prices and payment modalities, but contract sales, which form the bulk of the crop, will continue until further notice.

In a statement, the Tobacco Industry and Marketing Board (TIMB) said the auctions will close on July 20, with final deliveries accepted the day before.

“All growers who sell on auction floors are therefore advised to complete their grading and baling operations by Monday July 18 at the very latest,” said TIMB.

“The flue cured auction clean-up sale for 2022 tobacco auction marketing season will be held on August 17. More days will be added depending on the volume of deliveries to ensure all delivered tobacco has been sold.

“Because of the volumes that are still being received, contract sales will continue until further notice.” 

The 2022 tobacco marketing season opened on March 30 this year. 

The season has been characterised by firm prices for farmers because of the lower volumes anticipated as a result of poor rainfall.

Zimbabwe National Farmers Union vice president, Mr Edward Dune said the closing date for the 2022 flue cured auctions was reached as a result of an agreement after a comprehensive consultative process among all in the tobacco value chain.

“The 300 million kilogrammes target is yet to be achieved. We need more facilities to empower farmers to improve productivity,” he said.

Last year, the Government agreed under the Tobacco Transformation Plan to increase production to 300 million kilogrammes a year of good quality tobacco suitable for the international market and increase productivity. 

“However, delayed rainfall resulted in poor quality of tobacco compared to sales recorded last year,” said Mr Dune. “The 2022 season has been characterised by poor rainfall distribution which resulted in lower volumes. The crop however paid better than 2021.

“The major challenge has been induced by extreme weather conditions ranging from delayed onset of rains, prolonged dry spells, followed by incessant rains thereby negatively affecting the crop.”

“ The other major challenge has been delayed farmer payments against an inflationary background.” 

Mr Dune said although the prices were good, merchants were not paying on time in the face of this highly inflationary and volatile macro-economic environment, thereby disabling farmer viability, added Mr Dune.

Zimbabwe Integrated Commercial Farmers Union president Mrs Mayiwepi Jiti said most of the tobacco farmers had now sold their tobacco.

“Tobacco farmers are no longer in the habit of withholding the crop after curing because it is more expensive compared to delivering to the floor on time,” she said. “Some tobacco farmers realised low yields because fertilisers were washed away by rains that were experienced. 

“The prices were fair. However the daily withdrawal limit per day at banks required farmers to visit the bank several days. Every year we experience tobacco theft cases from nursery stage to bailing stage. Farmers and police should take action to eradicate thefts.” 

Zimbabwe Indigenous Women Farmers Association Trust president Mrs Dephinah Nkomo said the irrigated crop was in a better condition compared to the dryland crop.

“Inadequate inputs hindered the expected yields. Despite the drought experienced, tobacco growers under irrigation harvested the best grade of tobacco this year,” she said. 

Tobacco auction sales were conducted at the Tobacco Sales Floors, Premier Tobacco Floors and Boka Tobacco Floors.

This year marked three years of conducting tobacco sales under Covid-19 pandemic guidelines.

Tobacco growers this year retained 75 percent of their payment in foreign currency, an increase from 60 percent the previous season.

The remaining 25 percent was deposited into the farmers local currency accounts.

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