Millions roll from auction floors

15 May, 2016 - 00:05 0 Views
Millions roll from auction floors Trust Piano from Macheke in the company of his parents at Boost Africa Tobacco Floors in Harare last week. - Picture: Justin Mutenda

The Sunday Mail

Livingstone Marufu
TOBACCO deliveries to auction floors have risen significantly with US$55 million having been realised in the past five days following the Reserve Bank’s elevation of tobacco farmers to corporate status to allow them to withdraw US$10 000 per day.
Tobacco Industry and Marketing Board public relations manager Mr Isheunesu Moyo told The Sunday Mail that the increased cash withdrawal limit encouraged farmers to sell their crop.
“Farmers are now trading their cash crop with confidence as they now know that they are treated as corporates and get cash soon after delivering their crop. This has seen seasonal sales improving significantly.
“They have realised US$55 million in the past five days selling close to 19 million kg; this means that banks are releasing an average of US$11 million a day to farmers.
“It’s very promising as we have already sold more than 62 million kg, which is equivalent to 30 percent of last year’s seasonal sales in the first 30 days.
“Tobacco sales floor which has so far sold more than 8 million kg, has increased sales teams to three from two at the beginning of the season due to the intensity of the business over the past few days.
‘‘We have authorised auction floors to open on Saturday if there is need to do so because the volumes have suddenly increased,” said Mr Moyo.
Tobacco farming is one of the major contributors of the fiscus with experts projected at US$670 million this year.
It has also become a life-changer for many small-scale farmers who neared former commercial white farmers’ record of 237 million kg of the golden leaf in 1999/2000 farming season by reaching more than 223 million kg at least twice since 2010.
The strides made in tobacco farming embody the success of the Land Reform Programme and can play a major role in alleviating cash shortages.
Currently, total exports stand at US$229 million from 37,4 million kg.
Zimbabwe Farmers Union principal director Mr Paul Zakaria said: “We are happy with the central bank’s directive as farmers are entities in their own right and should get US$10 000 as they have labour costs to cater for.
“We encourage farmers to bring their tobacco now as we are happy with the current prices and we expect them to pick further in the near future.
“Farmers should have adequate knowledge and should not mix up grades as this will certainly compromise their prices.”
The highest price for contract-farmed tobacco is US$6,25 per kg and US$4,99 per kg for individually grown crop.

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds