Online Reporter
Theseus Mauruki Shambare in BULAWAYO
THE Tobacco Industry and Marketing Board (TIMB) says tobacco prices have begun to stabilise across auction floors following recent Government-led interventions aimed at strengthening buyer participation and improving competition in the marketing system.
The development follows a high-level tour of tobacco processors and auction floors last week by the Minister of Agriculture, Mechanisation and Water Resources Development, Dr Anxious Masuka, which authorities say helped restore confidence and improve market activity.
Since the opening of the 2026 marketing season, farmers had raised concerns over inconsistent pricing and early-season volatility, with complaints largely centred on weak buyer participation and uneven price discovery on auction floors.
Authorities say these challenges were initially compounded by reduced participation from some licensed buyers, which weakened competition and contributed to downward pressure on prices at the start of the season.
However, following Government engagement with key industry players, TIMB say there has been a noticeable improvement in average prices across all auction floors.
TIMB chief executive officer Mr Emmanuel Matsvaire said the market is now showing clear signs of recovery and stabilisation.
“There is a very noticeable increase in average price where it has gone up on all the auction floors.
“So we are very happy to announce that prices have started to stabilise in Harare and growers themselves would be testimony to the increase in price,” Mr Matsvaire said on the sidelines of the Natural Cured Virginia and Burley marketing at the ZITF grounds in Bulawayo on Wednesday.
He said Government engagement with processors and auction floors helped strengthen buyer participation and improve overall market performance.
“What we are seeing is that following the minister’s visit and engagements with processors and auction floors, there has been improved activity and better price outcomes for farmers,” he said.
Mr Matsvaire said Zimbabwe’s tobacco sector remains largely export-driven, with about 98.5 percent of the crop destined for international markets, meaning global demand continues to play a key role in price formation.
He said the growing confidence in contract farming is also supporting market stability, as contract arrangements offer guaranteed markets and traceability compared to the auction system.
“So what you would see is that contract crop is much more secure because it already has a market, somebody who wants to buy that crop, unlike auction crop which lacks some aspects like traceability,” he said.
At the centre of the Government intervention was a drive to ensure fair competition on auction floors and protect farmers from early-season price distortions, while improving coordination across the value chain.
TIMB said it will continue monitoring price movements and buyer participation throughout the season to sustain stability and ensure growers are not prejudiced.
Farmers have welcomed the improving price trend, although some say consistency remains key as the marketing season progresses.
Tobacco Farmers Union Trust president Mr Edward Dune said he was satisfied with both the quality of tobacco coming from Matabeleland and the current pricing environment, while urging continued buyer participation.
“We are happy with the project of Natural Cured Virginia which is environmentally friendly and does not degrade the environment. The prices are viable and we hope more buyers participate,” he said.
Bongani Moyo