Story by Tendai Munengwa
ZIMBABWE’S tobacco marketing season has generated close to US$700 million, with farmers and industry players calling on the Tobacco Industry and Marketing Board (TIMB) to crack down on buyers accused of manipulating prices.
The concerns come as the country recorded a major milestone on Thursday with the opening of new tobacco auction floors in Bulawayo, reflecting the continued expansion of tobacco production into Matabeleland.
The marketing season entered Day 54 with more than 266 million kilogrammes of tobacco sold so far, while over 100 million kilogrammes remain awaiting sale.
Farmers at the newly opened Bulawayo floors welcomed the development, saying it would strengthen tobacco production in the region.
“We are happy that tobacco is now being marketed here in Bulawayo. This is true testimony that this region can also grow the golden leaf and generate income,” said one farmer.
Another grower said the move would encourage wider participation in tobacco farming across Matabeleland.
“The opening of these floors will encourage more farmers to venture into tobacco production and contribute to foreign currency generation, as farmers in Matabeleland have now come of age in tobacco farming,” the farmer said.
Industry statistics show tobacco deliveries have risen by 22 percent compared to the same period last year. However, overall earnings have declined by 10 percent after average prices at both auction and contract floors dropped by 25 percent.
The price slump prompted Government intervention aimed at stabilising the market and compelling buyers to participate competitively.
TIMB Chief Executive Officer, Mr Emmanuel Matsvaire, said the regulator had started seeing positive results following the intervention.
“We are happy that there is a remarkable improvement in the number of buyers, creating competition at the auction floors. Prices have firmed up since Government interventions directing all buyers to participate,” he said.
“We expect all buyers to come on board and for prices to continue improving.”
Despite the improvements, concerns persist at some auction floors in Harare over alleged price manipulation by buyers offering sharply different prices for similar grades of tobacco.
Tobacco marketing expert, Mr Dickson Kubvakacha, urged TIMB to tighten oversight and enforce regulations.
“TIMB should enforce regulations and conduct a vetting process on all buyers. As the regulator, TIMB should read the riot act because a disparity of US$2 on the same quality of tobacco by different buyers is unacceptable,” he said.
“TIMB is there to protect the dignity of farmers, who are major stakeholders.”
A farmer from Concession said growers were hopeful that prices would continue improving following Government action.
“We hope prices will continue to improve following Government intervention directing TIMB to whip buyers into line,” he said.
The developments have intensified calls for a fair and transparent pricing system to safeguard farmers’ earnings and sustain the growth of Zimbabwe’s tobacco sector.
