The ManicaPost
Samuel Kadungure
Senior Reporter
THE Rusape tobacco contract floors opened today with a ceiling price of US$6 per kilogramme for the top grade of the golden leaf, raising growers’ hopes that it will firm as the quality improves and earn them a return on their investment.
The price, so far paid by Voedsel Tobacco International, a wholly indigenous company, breached the benchmark of between US$3,50 and US$5,40/kg anticipated by the Tobacco Industry and Marketing Board (TIMB).
TIMB had indicated that top quality tobacco grades were likely to remain unchanged ($3,5 0- $5,40/kg) in prices compared to last season, but Voedsel flexed its financial muscle to pay US$6.
Their first bale was auctioned for US$3, 30/kg, while the cheapest (primings) went for US$0,80.
Voedsel managing director, Mr Tenson Wandi, who presided over the auction said they can breach the price if the quality improves.
“The first bale went for US$3,20 per kg, but as we progressed we started to see some good tobacco coming, and our top price for today was US$6/kg.
“The volumes on the opening day was overwhelming, which shows that the growers have confidence in us. A good leaf should fetch a good price, and those who sold today (Thursday) will start receiving their money tomorrow (Friday). We are finalising modalities for the banks to operate in-situ so that growers who would have sold their tobacco are able to cash out that same day,” said Mr Wandi.
He said they are expecting the volumes to increase by mid-April, and encourage growers to deliver early to have adequate time to prepare for the next season.
TIMB spokesperson, Ms Chelesani Moyo said they are targeting about 250 million kilogrammes of tobacco this season.
Ms Moyo said TIMB has set up an inspectorate department to curb all illegal activities like side-marketing in the tobacco industry.
“Inspectors have been deployed in all tobacco farming regions to detect and investigate all suspected illegal activities. A Statutory Instrument on the side marketing of tobacco with stricter penalties is being crafted to bring to book those responsible for side marketing under the mantra: ‘Zero tolerance against side marketing’,” said Ms Moyo.
Voedsel contracted 10 000 farmers in Manicaland.
