LIVINGSTONE MARUFU
The government has hinted that the tobacco selling season may begin earlier than usual to improve liquidity in the market.
Every year, the international buyers mobilise around US$600m to buy the country’s golden leaf.
The money is anticipated to help the nation with much-needed forex to increase liquidity and stabilize the volatile exchange rate.
It is delivered in three to four batches.
According to a government source who spoke with Business Times, an early opening might aid farmers that use irrigation in their efforts to offset the high expenditures they have been bearing since September 1, 2023.
“The Lands, Agriculture, Fisheries, Water and Rural Development Ministry, Treasury, the central bank and the Tobacco Industry and Marketing Board [TIMB] have already met concerning the opening of the tobacco selling season but finer details will be out at the end of this month or early February.
“But indications are that we may open early in March, given the liquidity crunch in the market to oil the creaking economy,” a government source said.
According to TIMB, the board is making wide consultations with the stakeholders on suggested dates for the opening of the 2024 marketing season .
TIMB chairman Patrick Devenish told Business Times that the board is expected to meet at the end of January to deliberate on licencing of buyers.
“There are various processes going on pertaining to the opening of the season but the actual dates will be announced in the next few weeks.
“Though we don’t have the actual dates yet, there is a likelihood of the floors opening early to assist farmers with the irrigated crop who have already cured over 50% of the tobacco,” Devenish said.
According to Rodney Ambrose, CEO of the Zimbabwe Tobacco Association, most of his members are prepared for the upcoming selling season.
“Farmers are already facing various challenges hence the early opening of the season could reduce risks of storing graded tobacco on farms and generate foreign currency early to positively stimulate the market,” Ambrose said.
He said farmers are engaging the government over the 75% foreign currency retention threshold which they feel is not viable.
