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Tuesday, June 18, 2024

Tobacco farmers to participate in forex auction to finance operations

Story by Owen Mandovha

Tobacco growers will be able to participate in the Reserve Bank of Zimbabwe forex auction during the upcoming marketing season in order to access foreign currency to finance their production operations

The Tobacco Industry and Marketing Board (TIMB) made the announcement of payment modalities for the 2024 tobacco marketing season which will commence on the 13th of next month for auction floors while contract floors will open the next day.

According to TIMB, growers will be paid 75 percent of their proceeds in foreign currency with the remaining 25 percent to be settled in Zimbabwe dollars.

The Reserves Bank of Zimbabwe standardised foreign currency retention ratios for all exporters at 75 to 25 percent in last year’s mid-term monetary policy and the move by the TIMB is aimed at sustaining their operations in case they require to import essential inputs for the next production season.

The TIMB has forecasted deliveries at 265 million kilogrammes for this year’s season compared to the 296 million kilogrammes delivered last season.

Government has, however, emphasised the need to enhance value addition of the golden leaf with several companies setting up processing plants to increase foreign currency generation.

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