Tobacco farmers have earned USD 90.4 million since the beginning of this year’s tobacco season having sold 35.3 million kg at an average price of USD 2.56 per kg, reports The Herald.

32.6 million kg, the majority of the crop, have been sold through contract floors, which is fast becoming the new norm. 2.6 million kg have sold through auction sales.
Whereas the average price was USD 2.25 per kg last season, it has increased to USD 2.56 per kg and is stabilising says Mr Meanwell Gudu, chief executive of the Tobacco Industry and Marketing Board (TIMB).
“The prices are firmer compared to last year,” he said. “The payments are being processed on time and farmers are accepting both RTGs and foreign currency at the banks.”
He went on to say that the leaf quality of the crop is better due to heavy rainfalls although the yields are down compared to the previous year, reports The Herald.
While farmers are generally happy with pricing and the agreed payment arrangement of 60 per cent foreign currency and 40 per cent local currency, some of the feel that they are still being taken advantage of.
“Prices are better than last year. So far, the situation is good but the high bank charges will affect us,” said farmer Mr Munyaradzi Mabuwana.
“Farmers feel some companies are ripping them off. We are going to approach the TIMB, RBZ and the ministry for intervention,” said Mr George Seremwe, president of the Tobacco Association of Zimbabwe.