Story by Tendai Munengwa
GOVERNMENT has raised concern over subdued tobacco prices at auction floors, amid revelations that surrogate buyers are manipulating the market and short-changing farmers.
The issue has emerged despite a strong start to the 2026 marketing season, with deliveries surpassing 120 million kilogrammes, a 70 percent increase compared to the same period last year.
However, a widening gap between auction and contract prices has triggered alarm, with the same quality leaf fetching higher returns under contract arrangements. Latest figures from the Tobacco Industry and Marketing Board (TIMB) indicate farmers may have lost over US$80 million to surrogate activities.
Permanent Secretary in the Ministry of Agriculture, Mechanisation, Water Resources Development, Professor Obert Jiri said authorities are engaging stakeholders to address the distortions.
“We are worried as a government by the low prices being offered to farmers. We have cited surrogates who are buying at auction floors at low prices and then reselling the same tobacco to merchants for a commission. We are engaging the buyers to give fair pricing such that all tobacco with the same quality must fetch the same price at auction and contract, so we want to make sure that the anomaly is corrected so that the farmer is rewarded for their hard work,” he said.
Analysts say while enforcement measures can rein in surrogate buyers, long-term stability will depend on structural reforms, including decentralising auction floors to enable merchants to buy directly from farmers in rural areas.
The move is expected to improve price discovery and ensure growers receive fair value for their crop.
