News / Local
Zimbabwe's tobacco auction floors ready for opening
18 Mar 2022 at 01:26hrs | Views
Tobacco auction floors are ready for the opening of the marketing season on March 30.
Farmers are expected to start delivering the crop next Wednesday.
Yesterday, all the three auction floors; Tobacco Sales Floor, Boka Tobacco Floors and Premier Tobacco floors had prepared for the opening of the marketing season including adhering to the Covid-19 regulations as required by the Tobacco Industry Marketing Board (TIMB) including displaying relevant posters and fliers.
The floor operators confirmed that they are now ready to receive tobacco.
Premier Tobacco Floors executive director, Mr Owen Murumbi said they had done all the preparations required for opening.
"We have been licensed. We have cleaned the premises and adhered to Covid-19 regulations. We have also trained staff," he said.
At TSF, trolleys have already been laid on the sales floor while trial of sales to check on the systems have been carried out.
Staff has been trained and regulations for Covid-19 followed.
The 2022 tobacco marketing is expected to be characterised by firm prices due to a decline in volumes as a result of poor rainfall distribution.
According to the TIMB, 95 percent of the crop is expected to be sold through contract floors while auction floors will take the remaining five percent.
There have been concerns over this with some stakeholders arguing that auction floors should have also been decentralised.
There are suspicions that self-financed farmers may end up sidemarketing, selling to through contract floors closer to their areas to cut on transport costs.
Tobacco farmers shall be paid 75 percent of their sales proceeds in foreign currency and the 25 percent portion shall be paid in local currency, converted at the prevailing auction exchange rate on the day of sale.
The 75 percent portion shall be paid directly into the growers' foreign currency accounts and shall be treated as free funds.
Similarly, the 25 percent local currency portion shall be deposited into the growers' local bank accounts or e-wallets.
Farmers are expected to start delivering the crop next Wednesday.
Yesterday, all the three auction floors; Tobacco Sales Floor, Boka Tobacco Floors and Premier Tobacco floors had prepared for the opening of the marketing season including adhering to the Covid-19 regulations as required by the Tobacco Industry Marketing Board (TIMB) including displaying relevant posters and fliers.
The floor operators confirmed that they are now ready to receive tobacco.
Premier Tobacco Floors executive director, Mr Owen Murumbi said they had done all the preparations required for opening.
"We have been licensed. We have cleaned the premises and adhered to Covid-19 regulations. We have also trained staff," he said.
At TSF, trolleys have already been laid on the sales floor while trial of sales to check on the systems have been carried out.
The 2022 tobacco marketing is expected to be characterised by firm prices due to a decline in volumes as a result of poor rainfall distribution.
According to the TIMB, 95 percent of the crop is expected to be sold through contract floors while auction floors will take the remaining five percent.
There have been concerns over this with some stakeholders arguing that auction floors should have also been decentralised.
There are suspicions that self-financed farmers may end up sidemarketing, selling to through contract floors closer to their areas to cut on transport costs.
Tobacco farmers shall be paid 75 percent of their sales proceeds in foreign currency and the 25 percent portion shall be paid in local currency, converted at the prevailing auction exchange rate on the day of sale.
The 75 percent portion shall be paid directly into the growers' foreign currency accounts and shall be treated as free funds.
Similarly, the 25 percent local currency portion shall be deposited into the growers' local bank accounts or e-wallets.
Source - The Herald
