ZCFU president, Wonder Chabikwa, said while prices for lower grades for the crop were acceptable, those for the higher grades needed to be looked at.
“The price for the top grade tobacco needs to be improved because buyers are not going above $4.99/kg at the floors and paying as much as $5,40/kg to contract farmers,” Chabikwa said.
The highest price at the auction floors has been recorded at $4,99 while the contract floors have recorded their highest price at $5,70/kg. According to the Tobacco Industry Marketing Board, the average price so far is $3,74/kg. Some of the farmers at Boka Tobacco Auction Floor expressed their frustration at the differences in prices. “It’s just hard to know that some people are being paid more for the same grade of tobacco,” said one young farmer from Mazowe. “These guys are ripping us off.” A farmer who only moved into farming tobacco two years ago said the auction system was unfair and it was better to have predetermined prices. “We are encouraging the buyers to recognise that this is high quality tobacco and pay the right price,” Chabikwa said.
Farmers are suspicious that there could be a cartel of buyers conniving to keep prices at certain levels.
Figures from the TIMB show that at the beginning of April farmers had sold 43 million kilogrammes since the opening of the tobacco selling season in February, earning $160 million.
Post published in: Agriculture
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