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Oliver Kazunga, Senior Business Reporter
FARMERS are optimistic of positive gains as the tobacco season opens today with the Tobacco Industry and Marketing Board (TIMB) saying all Covid-19 safety protocols are in place to ensure smooth operations.

The marketing season, which traditionally starts between February and March was delayed due to Covid-19. The country expects to benefit from high demand with projected volumes at around 200 million kilogrammes. The First Round Crop and Livestock Assessment report indicates that farmers planted 125 177 hectares of tobacco this season compared to 117 049 hectares last season.

TIMB statistics show that by March 19, a total of 145 625 farmers had registered for tobacco production and selling.

This season the Reserve Bank of Zimbabwe (RBZ) has said farmers would get 60 percent of their money in foreign currency deposited into their FCAs and 40 percent in local currency as compared to last year when the ratio was 50-50.

TIMB chairman, Mr Patrick Devinish, said it was all systems go as everything was in place to ensure a smooth selling season.

“All preparations are ready with the Covid-19 protocols in place. All markets have been approved by our staff, so we are fully ready and have been inspected by our Deputy Minister (Vangelis Haritatos),” he told Business Chronicle in an interview.

The selling season starts with auction sales while contract sales will open tomorrow. Farmers are also optimistic and look forward to good prices as they have produced a high-quality crop due to the favourable rains.

Zimbabwe Commercial Farmers Union president, Dr Shadreck Makombe has said farmers are geared for the season and are expecting good prices.

He urged banks to have facilities in place at the auction floors and the contractors to ensure farmers get their payments processed quickly to avoid a situation in which growers stay at the floors or linger at the contractors.

The Tobacco Association of Zimbabwe president, Mr George Seremwe said farmers were expecting a smooth season that is not influenced by middlemen.

“We expect a good season as farmers are going to get 60 percent of their money in foreign currency. The foreign currency will help us break even and remain with a profit.

“We hope as the season progresses the retention will also be reviewed. We also expect higher prices since most farmers produced a high-quality crop,” he said in a recent interview with our Harare Bureau.

“We hope the TIMB (Tobacco Industry and Marketing Board) will ensure buyers are genuine and there is no collusion on prices.”

Last year farmers complained after they were hit by the fixed official exchange rate at the start of the season, which did not reflect the real market value exhibited by the volatility of the local currency at that time.

The TIMB and the RBZ have built up a set of rules to ensure both contractors and farmers are committed and act fairly.

Copies of legally binding contracts were submitted to the TIMB and the deadline was last September and the contracts had to be supported by proof of inputs distributed using paid up invoices or payment plans with suppliers. — @okazunga