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Runyararo Muzavazi, Harare Bureau
At least $10 million worth of tobacco weighing four million kilogrammes have been sold at auction floors and contract farming since the beginning of the marketing season last week, according to figures released by the Tobacco Industry and Marketing Board.

The average price for auction floors and contract farming was $2,53 per kg, 24 percent higher than the $2,03 of the 2016 marketing season.

The highest price was $5,40 per kg, while rejected bales stood at 4 231 compared to 2 981 for last year.

Reasons for rejection of bales included oversized, underweight, badly handled and mixed hands.

A total of 58 910 bales were laid, with 54 679 being sold.

TIMB spokesperson Mr Isheunesu Moyo said they were excited about the prices for this season, which appeared to firm.

He expressed confidence that this year’s marketing season would be better compared to last year.

“We have had a positive start to this season as the average prices are higher than that for last year on both auction and contract floors,” said Mr Moyo.

He said they will continuously educate farmers on the need to open bank accounts to safeguard their money.

Mr Moyo said this in reaction to concerns from auction floors officials, who said more needed to be done to raise awareness on the need for farmers to open bank accounts.

Acting chief executive of Boka Tobacco Auction Floors, Mrs Chido Nyakudya implored TIMB and banks to embark on a blitz to educate farmers on the importance of opening bank accounts.

“Farmers are selling their tobacco before they open bank accounts, something that would delay processing of their money,” she said.

Farmers interviewed urged financial institutions to educate them on several banking transactions like withdrawing cash and transfers, to avoid situations in which they would fall prey to unscrupulous people at auction floors.

“For some, there is need to have an appreciation on the difference between a bank account number and bank card number because a transaction would not go through should there be a mix up in those numbers,” said one farmer.

Farmers last week stagged a demonstration at the auction floors after banks did not allow them to withdraw $1 000 at once for their first sales and $500 per transaction for susbequent sales, in accordance with a facility set up by the Reserve Bank of Zimbabwe.

The situation was eventually addressed following the intervention of the central bank.