The Tobacco Industry and Marketing Board (TIMB) has introduced a new pricing system aimed at ensuring fairer market prices and addressing long-standing concerns over delayed payments to farmers.
Under the new model, the minimum price for the following day’s contract sales will be determined based on the average price of all tobacco sold across auction floors and contract sales, regardless of grade. This adjustment is expected to create a more transparent and representative pricing structure, benefiting farmers by ensuring fairer compensation for their produce.
As preparations for the marketing season advance, TIMB has reassured growers that payments will be processed within 48 hours of delivery, in line with Statutory Instrument (SI) 77 of 2022. This regulation mandates that all contract growers receive payment within two days, and failure to comply may result in penalties, including fines or imprisonment.
TIMB Public Affairs Officer Chelesani Tsarwe emphasized the board’s commitment to ensuring timely payments and urged farmers to report any delays. “TIMB is guided by SI 77 of 2022, which stipulates that all tobacco growers are entitled to be paid within two days of completing sales. If, for any reason, payments are delayed beyond this timeframe, affected growers should report the matter to TIMB for assistance,” she said.
Zimbabwe Tobacco Growers Association Chairman George Seremwe welcomed the early start of the marketing season but called for authorities to uphold the 48-hour payment rule. He also urged the government to introduce incentives that would help farmers retool and sustain their businesses, especially in light of the Reserve Bank of Zimbabwe’s recent reduction in the foreign currency retention rate from 75% to 70%.
Despite these positive changes, TIMB has warned that some payment delays stem from side marketing, where farmers sell their tobacco outside registered contracts. The board stressed that seamless transactions depend on growers ensuring their banking details match their registered grower numbers in buyers’ databases.
Tobacco Farmers Union Trust President Victor Mariranyika called for the introduction of an export retention bonus at the end of the season to cushion farmers against the reduced foreign currency allocation. He highlighted past challenges where the local currency portion of payments was affected by inflation and urged authorities to address the impact of the increased ZiG component in tobacco transactions.
With the introduction of these new policies and pricing systems, TIMB aims to enhance efficiency, transparency, and fairness in the tobacco market, ultimately ensuring that farmers receive timely and adequate compensation for their produce.
