Tobacco selling starts today

The tobacco selling season has started today with the opening ceremony held at Harare Tobacco Sales Floors.

Other sales like the contract sale will commence operation tomorrow

With the opening of tobacco selling, the Tobacco Industry and Marketing Board (TIMB) has licensed the three traditional auction floors in Harare: Boka Tobacco Floors, Tobacco Sales Floor and Premier Tobacco Floors.


According to TIMB the tight fixing of operational modalities during the market season is critical as it ensures the completion of business in the safest possible environment for all stakeholders.

This season, tobacco growers will be paid 60 percent of their earnings in foreign currency while the remaining 40 percent will be paid in local currency using the auction rate, with a higher foreign currency component than last year’s 50-50.Farmers were pressing for up to 80 percent foreign currency retention after their experience last year when farmers were hit by a static interbank rate that had lost touch with reality.  

This year they are getting the market-related auction rate.

TIMB has put in regulations that merchants must abide by before they are registered to eliminate fly-by-night players.  

The regulations meant copies of legally binding contracts had to be submitted by September 30 last year and proof of inputs distributed either paid up invoices or payment plans with suppliers.

Contractors also had to send TIMB a complete schedule of inputs and their costs by June 30.

TIMB chairman Mr Pat Devenish said most merchants had met the requirement and that contracting companies had largely complied with new regulations on funding their contracted farmers.  

The Lands, Agriculture, Fisheries, Water and Rural Resettlement Ministry indicated that it was impressed by the level of preparedness by auction floors and their adherence to Covid-19  regulations.

Farmers said they were expecting a smooth season where they do not experience challenges especially on payments. About 200 million kilogrammes of tobacco are expected to go under the hammer this season.  Last season, farmers sold 184 million kilogrammes.