The Sunday Mail
Online Reporter
Government has moved to localise funding for tobacco production with a US$60 million facility, to limit the growing dominance of the private contractors.
Presenting the post-Cabinet briefing yesterday, Information and Broadcasting Services Minister Monica Mutsvangwa said the Tobacco Industry Marketing Board (TIMB) will contact farmers in the upcoming season to the tune of US$60 million.
“As part of the strategy to localise the funding of tobacco, the Tobacco Industry and Marketing Board will contract 50 000 hectares valued at US$60 million, compared to the 12 000 hectares contracted the previous season,” she said.
Although the tobacco sector has performed well in recent years, the benefits to tobacco farmers have been limited as most of the farmers are contracted by private companies.
Contract tobacco farming enatils that the private companies provide the farmers with seed, fertilisers and chemicals. In turn, they are contracted to sell the produce to the contractor at a certain price.
Meanwhile, latest figures show that the performance of the country’s tobacco sales and exports is ahead of last year’s performance.
“On tobacco marketing, the nation is informed that cumulative sales increased to 206 639 819 kilogrammes compared to the 184 million kilogrammes that was sold during the similar period last year.
“The 81 963 405 kilogrammes valued at US$318 066 431 and exported so far compares favourably to the 86 914 741 kilogrammes valued at US$283 081 584 exported during a similar period in 2020 reflecting the impact of better prices,” said Minister Mutsvangwa.
Last year, tobacco exports reached 184 million kgs, earning the country US$782 million.
