Zimbabwe's flue-cured tobacco selling season, initially scheduled to start 14 March, has been postponed indefinitely because farmers are not ready to sell.
Farmers want a special rate, arguing the current US$ to Z$ 250 is not viable, reports Zimbabwean daily The Herald. This follows a long-standing dispute between farmers and the Reserve Bank of Zimbabwe over the exchange rate. They also want an average price of US $4 per kg at a rate of about Z$ 500 per US dollar against last year’s US $1.99 per kg, at an exchange rate of Z$ 105 per US$.
Moreover, the bulk of the crop was not ready for sale because growers planted late, largely due to input shortages. Dr Andrew Matibiri, Tobacco Industry and Marketing Board technical director, said the auction floors would remain closed until further notice. The 2007 selling season is expected to see at least 70 million kilogrammes of tobacco changing hands. (sra)