HARARE - Analysts are confident of the revival of Zimbabwe's tobacco industry after incentives given to farmers, Kingdom Stockbrokers (KSB) have said. (Pictured:A tobacco field outside Harare)The sentiment comes amid the country realizing increased inflows from tobacco sales which amounted to a total of US$150 million by mid-August, a 27 per cent increase from the previous year.
“The sector will do much better next year as inputs are readily available and production is likely to increase with seed sales having surpassed last’s
year’s sales by 67 per cent,” said a KSB representative. “This season tobacco growers are entitled to 100 per cent of their foreign currency from the sales. They are being paid US$1500 on the spot while the rest is deposited in their foreign currency accounts. This system was expected to improve conditions for the farmers, as they were no longer expected to spend days at the floor waiting for their cash.
“In the previous seasons there was chaos because of the poor pricing structure and the use of the overvalued Zimbabwe dollar, but now everyone will earn money in hard currency.”
The tobacco selling season ended on August 28 and the Tobacco industry marketing Board is yet to reveal how much of the golden leaf has been sold.
Tobacco is a significant contributor to Zimbabwe’s gross domestic product.
The industry has over the years been on a wane following the economic crisis that battered Zimbabwe since 2000.
Post published in: Agriculture