Zim tobacco auction floors open

The sales, which were supposed to start at 7.30am at the country's three auction floors, were only conducted at the Tobacco Sales Floor (TSF) from 3pm after government officials had convinced growers to sell while they looked into the emotive issue of the exchange rate.
Among the officials that addressed the growers, some of whom had become restive due to the delayed start, were Agriculture Minister Rugare Gumbo, Acting Finance Minister Patrick Chinamasa, and Reserve Bank of Zimbabwe Governor Gideon Gono.
Chinamasa told the growers that the government was close to concluding the pricing mechanism of this year's crop, and pleaded with the farmers to be patient with them.
"We want you to give us time to work on the pricing mechanism while you continue to sell your crop," Chinamasa told the growers, who were camped at the TSF auction floors.
"Don't worry about how much gets into your account. Just worry about the US dollar price. Try to negotiate with the buyers to get a good bargain of the US dollar price."
He promised to get back to growers with an answer in a few days' time, saying the government was committed to the viability of the tobacco sector.
He said from the discussions they had had so far, indications were that the government would yet again award farmers viable and competitive prices that would ensure continued growth of the cash crop.
Gono told the farmers never to doubt the government's commitment to the growth of the tobacco industry.
"We are almost there," he said about the negotiations they were having. "The reason why we have not reached an agreement is that we want the truth on many things, including correct calculations on the inputs costs incurred by growers."
Gono said the government would once again reward growers handsomely to encourage them to go back to the farms and increase next year's production.
The government offered viable prices to growers last year, resulting in them increasing production from 54 million kg to an expected 80 million kg this year, he said.
He said the government would announce its position in about seven days.
Meanwhile, the RBZ governor announced that the 15 percent foreign currency retention scheme for tobacco growers had not been scrapped as earlier reported.
He blamed the Tobacco Industry and Marketing Board for misleading the central bank into believing that growers preferred being paid all their money in local currency.
"It's a lie. We didn't withdraw the facility. In fact, I am inclined to increase it from 15 percent to 20 percent."
He said the central bank would continue to support tobacco growers, including providing them concessionary funds to boost production.
The government, Gono said, would also pay farmers their outstanding bonuses for the crop they sold last year.
"What you must do now is to fight tobacco smuggling. We hear that tobacco is going to Malawi and others are involved in side-marketing. I want to warn those smuggling tobacco outside the country that their days are numbered," he said.
Some of the crop that was sold on Tuesday fetched as much as US$2, 95 per kg with some growers already expressing happiness with the price.
"The prices are reasonably fair," said Tobacco Growers' Trust chairman Wilfanos Mashingaidze.
TIMB acting chief executive Andrew Matibiri said he was happy that the floors had opened.
"I am looking forward to the rest of the selling season and I would like to encourage growers to bring more of their crop to the auction floors," he said.
Earlier, tobacco growers interviewed said they wanted a viable exchange rate or parallel market rates because they acquired most of their inputs based at black market rates. The exchange rate is currently pegged at $250 to the US$.
Tobacco is one of Zimbabwe's top foreign currency earners. ' New Ziana.