Misanet / The Standard, 2 May - Zimbabwean tobacco growers' representatives sought audience with the Harare Agriculture Permanent Secretary Simon Pazvakavambwa on Wednesday to intervene on the tobacco price. Announced prices did not inadequately meet costs, the growers held.

'Standardbusiness' can reveal that the tobacco growers' representatives raised their concern over the package put in place by Zimbabwe's Central Bank, which they said was far below their expectations.

"We met Pazvakavambwa and briefed him on our concerns. We hope to meet RBZ Governor Gideon Gono and present our position," a source, who was among those who attended the meeting, said Thursday.

Tobacco farmers contend that the support framework announced by RBZ is inadequate to meet costs incurred growing the golden leaf, once Zimbabwe's major foreign currency earner. Central Bank governor Gideon on Monday announced the tobacco support framework, which he said "rewards quality and ensures grower viability while at the same time encouraging early delivery of the green leaf tobacco to the auction floors".

Mr Gono said on Monday: "With effect from 25 April 2006, tobacco growers who sell leaf tobacco at the auction floors by 31 July 2006, will be entitled to a 35 percent delivery and early delivery bonus. This support framework will be based on the actual value of tobacco sold on the auction floors."

The RBZ Governor said the cut-off of 31 July 2006 takes into account unanticipated logistical challenges experienced by growers during the preparation of this year’s crop for marketing.

He said sales made after the cut-off date and before 31 August 2006 "shall attract a reduced delivery bonus of 15 percent." After that date a delivery bonus shall not apply, Mr Gono said.

He said under the new framework tobacco growers would be paid for all tobacco sold at the auction floors at the prevailing interbank rate.

"As a result the 15% Tobacco Growers Retention is discontinued," Mr Gono said. But farmers say the support price is inadequate.

Tobacco growers want an adjustment on the exchange rate to one US dollar for Zimbabwe dollars 180,000 and that the retention scheme either raised or maintained.

"We were pushing for the increase in the retention scheme from 15 to about 20 percent but RBZ has scrapped it totally and this will affect the growers," said a tobacco growers' representative.

On Monday tobacco growers' representatives warned of disaster in the coming season citing a mismatch between costs of farming and returns from sales.

By Ndamu Sandu

© Misanet / The Standard

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