Tobacco Farmers to Get 85% of Payments in USD

The 2023 tobacco marketing season officially opened today, 08 March 2023, with the contract floors set to open tomorrow.

The official opening ceremony will be held on Wednesday morning at the Tobacco Sales Floor (TSF). Two auction floors, that is, Tobacco Sales Floor (TSF) and Premier Tobacco Auction Floors (PTAF), have been licenced by the Tobacco Industry and Marketing Board (TIMB).

This season, tobacco farmers will be paid 85% of their sales proceeds in foreign currency and the remaining quarter in Zimbabwe dollars. The 85% will be paid directly into the growers’ foreign currency accounts and this is treated as free funds. The 15% local currency will be deposited into the growers’ local bank accounts or e-wallets.

Tobacco Farmers Union Trust president, Victor Mariranyika told The Herald that this season’s yield is expected to be better than last season. He said:

This year’s yield will be better than the previous season’s due to the implementation of best agronomic practises.

In terms of agronomic practices, the farmers have been and are looking after the crop very well, from seedbed to the auction, and we don’t expect any damage to the tobacco as a result of the rains.

The area under tobacco has increased this year because of the incentives the farmers have received from Government. Farmers were expected to be fully vaccinated to gain access to the floors, that is, should have received at least two doses.