Tobacco decentralisation applauded

MARKET watchers have applauded the Tobacco Industry and Marketing Board (TIMB) for decentralising tobacco auctioning saying the move was a step in the right direction.

Decentralisation comes at a time when more farmers were opting to grow highly rewarding golden leaf resulting in the number of registered tobacco farmers swelling to 91 278 from 70 904 in the previous season.

Zimbabwe is this year expected to produce 170 000 tonnes of tobacco from about 90 000 hectares planted at a yield of 1.88 tonnes per hectare.

In previous selling seasons, farmers were required to transport their produce to Harare where they would spend many nights and days at auction floors.

Tetrad Securities in its weekly market watch ending February 14, 2014 said the decentralisation will help bring buyers closer to farmers.

“During the week under review, TIMB, for the umpteenth time, issued a reminder to the effect that the 2013/14 marketing season will open on the 19th of February 2014.

“Three auction floors were licensed to handle auction sales and these are; Tobacco Sales Floor (TSF), Boka Tobacco Auction

Floors (BTAF) and Premier Tobacco Auction Floors (PTAF).

“In addition, Mashonaland Tobacco Company will handle contracted crop sales through its floors which are located in Harare, Rusape, Mvurwi and Karoi.

“The move by TIMB to slowly decentralise contract sales is a step in the right direction.

“This is so because the sellers will be brought closer to the buyers compared to a scenario where all sales are done in Harare.

“This enhances the quality of the crop compared to a scenario where farmers have to bring the crop to Harare from as far as Karoi,” said Tetrad.

Tobacco last year grossed around US$616.1 million and expectations are high this season that the figure will rise due to massive interest to grow the crop among farmers.