Maravi

(HERALD) Tobacco marketing season to open next month

Tobacco marketing season to open next month
Friday, 20 January 2012 00:00
Walter Muchinguri Assistant Business Editor

THIS year's tobacco marketing season opens on Wednesday February 15 with individual sales while contract sales commence the following day. Tobacco Industry and Marketing Board chairperson Mrs Monica Chinamasa told journalists yesterday that four auction floors would operating this season while seven buying teams will be in operation.
These are Tobacco Sales Floor, Boka Tobacco Auction Floors, Millennium Tobacco Floors and a new player Premier Tobacco Auction Floors.

"As you are aware we started with one auction floor at the beginning of last season which caused a lot of congestion before two more floors came on board but this time we are more prepared, there should be no congestion as farmers have a wider choice of auction floors."

Turning to the crop size, Mrs Chinamasa said although they had set an initial target of 150 million kg they were still carrying out assessments of the crop together with several stakeholders and a more accurate target would be announced at the end of next month.

"You will appreciate that this has been a difficult season because of the changing weather patterns that have been characterised by long dry spells punctuated by short wet spells and this has negatively affected the crop in some areas.

"This has also exposed our shortcomings in terms of irrigation facilities, which would have come in handy during this time," she said.
She added that the current assessments have shown that to date 56 369 hectares were planted, but they were expecting the figure to rise to around 80 000 hectares once the assessment is complete. A

total of 66 000 growers registered to grow tobacco this season and of these 34 734 growers have registered with the TIMB to sell their tobacco while 49 percent are yet to do so.

"Growers should be aware that they are free to book and deliver their crop on a first come-first-served basis to a floor of their choice and the practice of deliver today and sell tomorrow will apply at all auction floors," she said.

A total of 14 Class A buyers had their licences renewed and an additional four new companies were issued with licences to bring the total to 18 for this season.

There was, however, no room for Class B buyers who remain suspended. Tobacco production has risen from an all-time low of 48,8 million kg in 2008 to 60 million kg in 2009 where it was buoyed by adoption of multiple currencies and favourable prices at the floors, 123 million in 2010 and 132,5 million kg last year.

Labels: TOBACCO

posted by MrK @ 9:57 AM