High tobacco deliveries at auction floors

Date:

MARTIN MAWAYA

 HARARE-The 2023 tobacco marketing season which kicked off on March 8, has witnessed record deliveries of 86,14 million kgs of golden leaf compared to 72,71 million kgs of the same period last year.

The increase in delivery volumes represents an increase of 18% which is positive development for farmers and traders in the golden leaf sector.

Zimbabwe is anticipating to register a 7% increase as it targets to produce 230 million kgs up from 212 million kgs in 2022.

Sales are being conducted at the Tobacco Sales Floor (TSF) and Premier Tobacco Auction Floors (PTAF) in Harare.

According to the Permanent Secretary in the Ministry of Lands and Agriculture, Dr John Basera, farmers have so far delivered US$258 million worth of the golden leaf.

“Revenue to farmers is up by 19% from USD216 million as at day 29 in 2022 to US$258 million this year,” he said.

Dr Basera attributed the upwards increase in deliveries to the government Tobacco Value Chain Transformation Strategy of (2020-2025) and the Going4 Growth mantra.

Dr Basera added that the average price firmed slightly by “1% from US$2,97/kg in 2022 to US$3.00/kg in 2023, same period”.

Government targets 300 million kgs by 2025 in line with the national broader strategy of Vision 2030 where it aims to grow the sector to a US$8.2 billion economy.

This year Zimbabwe is expecting high volumes and good quality of tobacco as the country received good rains during the cropping season, with the bulk of it being produced by small scale farmers.

It is also expected to expand the crop grown under irrigation to at least 40% from the current 18%.

During the official opening of the market season, TIMB chairman, Patrick Devenish urged tobacco companies to ensure that payments to farmers are made in full within 48 hours of sales completion and warned that failure to do so would attract stiff penalties or cancellation of operating licences.

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