The 2021 tobacco marketing season has officially kicked off today while contract sales for the golden leaf are set to roar into life tomorrow (April 8) with only three auction floors licensed to trade.
These are Tobacco Sales Floor (TSF), Boka Auction Floors and Premier Tobacco Auction Floors and there will be operating from Harare alone.
Traditionally, the tobacco selling season gets underway in February, but due the global covid-19 pandemic induced lockdown, this could have necessitated the delay.
As such, decentralisation of auction floors that had characterised tobacco sales over the past seasons is also not on the cards this season.
It remains to be seen if this year’s sales will improve from the prior season which, according to statistics from the Tobacco Industry and Marketing Board (TIMB), saw 180.8 million kg valued at $452.3 million being delivered to the country’s contract and auction floors at an average price of US$2.50 per kg.
Over the past few seasons, farmers have been advocating for about 80 percent of their proceeds to be paid to them in United States dollars.
However, Government, through the Central bank has indicated that farmers will this season only receive 60 percent of theirs dues in United States dollars while the remainder will be paid in local currency.
Latest developments…..
Contrary to previous reports that tobacco sales would this season only be held in Harare, five centres have been given the nod to conduct sales accross the country.
TIMB licensed 28 A class buyers and 39 contract buyers.
The board has also approved decentralised contract sales to be conducted at five designated centres in Karoi, Mvurwi, Bindura, Marondera and Rusape.
