Africa-Press – Zimbabwe. The Tobacco Industry and Marketing Board (TIMB) says tobacco output is predicted to fall to 265 million kilogrammes this season, from 294 million kilogrammes recorded the previous season.
Speaking to the Zimbabwe Independent, TIMB public affairs officer Chelesani Tsarwe, also said the number of tobacco growers had dropped as a result of the prevailing drought. She said:
From the crop assessment exercise undertaken, which is a national tobacco forecasting exercise which helps us determine the national yield and production, the board anticipates a yield of 265 million kilogrammes.
(This) is a consequence of the El Niño conditions witnessed in southern Africa starting late last year.
Tsarwe said farmers will receive 75% of their payments in US dollars this season, with the remainder payable in Zimbabwe dollars. She said:
When it comes to payment of growers, the board is guided by the Reserve Bank of Zimbabwe (RBZ).
For this season, RBZ advised that the foreign currency retention for tobacco growers for the 2023/24 tobacco marketing season was standardised at 75% in line with the retention level for other market players.
Given that the 25% to be paid to tobacco growers in local currency is applied to the net sales proceeds after the settlement of all the loans, levies and other marketing costs, the net effect of this arrangement is that the tobacco grower shall effectively have a foreign currency retention which is higher than 75%.
Tobacco is one of Zimbabwe’s biggest foreign currency earners. This year’s marketing season will commence on Wednesday next week.
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