Tobacco auction was delayed by over a month due to the outbreak of the coronavirus. It has now been a month after President Emmerson Mnangagwa ordered a lockdown to contain the virus. Zimbabwe farmers started the auction on Wednesday. The opening of the tobacco auction aims to provide vital foreign currency inflows to an economy suffering from an acute economic crisis.
Tobacco Selling Reopens Following Issued Guidelines.
Statutory Instrument (SI) 94 of 2020 pardoned tobacco production to operate despite lockdown. However, the exemption came with guidelines that the sector had to follow to reduce the spread of the virus. The players were to follow these conditions to remain operational.
“Statutory Instrument 94 of 2020 supports the decentralized selling of tobacco. This should be the core thrust of the sector from now henceforth. This reduces gatherings in Harare and is also in line with government policy of devolution,” said Perrance Shiri, Agriculture minister at the official launch of the 2020 tobacco auction season in Harare.
Additionally, the transportation of tobacco to the floors can be re-organized by combining loads. This will reduce the number of farmers and human traffic gathering at the markets and also reduce transport costs paid by the farmer. Similarly, with the implementation of information technology, agrarians can monitor virtual sales of their crops. This can be done at the comfort of their houses without necessarily traveling to the selling floors. The minister insisted on the players being practical with the guidelines issued to avoid the continuous spread of the virus. Players should continuously implement these guidelines during the lockdown and even after to avoid reoccurrence of the cases.
The Tobacco Industry Marketing Board’s Report This Season.
The Tobacco Industry Marketing Board (TIMB) informed that the number of registered growers this year was 148 084. Compared to last year, it recorded 178 721 with more than 7 609 growers being first time registrations. Unfavorable weather conditions and uncertainty about retention of the foreign currency has led to the drop in numbers. Patrick Devenish, chairman of TIMB, clarified that allowing farmers to work during lockdown will enable them to plan and prepare for the coming season 2021 in time.
“The production cycle of tobacco season takes18-month. Therefore, more delays will affect the preparation of the 2021 season. This includes setting up seedbeds resulting in loss of two seasons. In addition, this will take a toll on the overall economy of the country,” he said.
This season tobacco was grown under poor weather conditions. The season entailed late rains, dry spells, and below-average levels of rainfall in many areas. The irrigated tobacco crop had major glitches due to unreliable power supplies.
The Coronavirus Pandemic Affects Trade Beyond Boards.
The minister stated, tobacco plantings had reduced from 133 000 hectares (ha) in the previous season to 117 000 ha in the current season. This is a 12% reduction in total. However, fewer plantations and poor weather conditions reduced the tobacco hectarage by 6% in this agricultural season. This, in turn, results in lower export proceeds from the tobacco crop. Also, coronavirus trade restrictions to control the spread of the virus in South Africa and China, Zimbabwe’s top export markets for the crop accounting for almost 63% in 2018, is expected to affect exports.
More:
