ZIMBABWE
Tobacco auction commences

The delayed tobacco selling season in Zimbabwe got off to a rocky start on Tuesday after government officials urged resisting farmers to sell.

The tobacco-selling season, initially scheduled to be opened in March, had been called off after growers refused to deliver tobacco because of an unprofitable exchange rate. The official exchange rate which is fixed at 250 Zimbabwean dollars to the U.S. dollar since August last year undervalues the value of their products.
Auctions kicked off over seven hours after the scheduled opening, following a meeting between government officials and farmers. The government officials promised a new support price for tobacco, as well as raising the amount of foreign exchange. Most sellers, however, were still not ready to sell their tobacco and are awaiting official announcements.
Zimbabwe's tobacco crop, which peaked at 237 million kgs in 2000, has declined sharply to 55 million kgs last year. This year's crop is expected to top 80 million kgs.

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