Tobacco Farmers Gear Up For Marketing Season

The Tobacco Industry and Marketing Board (TIMB) has come up with a transparent transporter framework to protect farmers from unscrupulous transporters during the marketing season.
The marketing season is set to open on March 13 for auction floors and the following day for contract sales.
The transporter framework will reduce losses incurred by farmers during the ferrying of crops to the market. Previously, farmers faced challenges such as rain, theft, and robbery while transporting the crop to the market.
Tobacco Farmers’ Union Trust President Victor Mariranyika said, “A transporter framework that was introduced will ensure that farmers have reliable transport adding that robbery cases are likely to be reduced”.
However, farmers have welcomed the move by TIMB.
“We are also happy that TIMB has introduced a transporter framework which will ensure that our crops are well protected on the way to the market,” Tariro Muchemwa said.
Marketing season brings joy to farmers who have done good as they are rewarded with high prices. Last season, growers were paid 75 percent directly into their foreign currency accounts and this was treated as free funds while 25 percent local currency was deposited into the growers’ local bank accounts or e-wallets.
In a statement, TIMB said the US dollar retention was standardized at 75 percent in line with the retention level for other sectors and businesses. This means that 25 percent will be paid in local currency.
The board said, “Given that the 25 percent to be paid to tobacco growers in local currency is applied on the net sales proceeds after settlement of all the loans, levies, and other marketing costs, the net effect of this arrangement is that the tobacco grower shall effectively have a foreign currency retention which is higher than 75 percent”.
Tobacco Farmers Union Vice President, Edward Dune said, “We can achieve 70 percent of last year’s product. The climate was tricky because some of the crop was compromised by the climate. This is the right time to sell our crops. We want money to circulate because this is the agro-based economy”.
Zimbabwe Tobacco Association (ZTA) Chief Executive Officer Rodney Ambrose said, “Farmer’s representatives have indicated that an early start to the season would help them to clear loans and reduce risks of stocking graded tobacco”.