THE Tobacco Industry and Marketing Board (TIMB) has directed that all free-funded tobacco will be sold through the auction system this year.
Tobacco production is grown under two arrangements in Zimbabwe namely contract and self-financing.
The directive from TIMB is part of latest regulations put in place ahead of the 2024/25 tobacco marketing season, which will protect farmers from unfair prices.
This comes amidst the backdrop of the strong performance of the tobacco industry in recent years, including record-breaking production, growing export earnings and sustainability initiatives.
TIMB’s directive, announced days before the commencement of this year’s marketing season, should guarantee fairness in pricing and curb side-marketing.
“We challenge all the 55 licenced merchants this season that there is no room to buy free tobacco outside auction floors,” said TIMB chief executive officer (CEO) Emmanuel Matsvaire.
He said as the regulator, TIMB had a zero-tolerance policy towards breaches.
Previously, farmers and merchants were allowed to buy tobacco from self-financing farmers outside the auction system on arranged terms, which the regulatory board now regards as creating avenues for unfair pricing.
Sales outside the auction system may also distort auction prices, since the minimum prices at the auction are used to determine the minimum price for contract tobacco.
TIMB has introduced a biometric registration system, underscoring the regulatory board’s commitment to combating illicit practices, among them side-marketing.
The tightened regulations will curtail misconduct by unscrupulous farmers and contractors who undermine the integrity of auction pricing, thereby safeguarding the competitiveness of auction prices.
Mr Matsvaire also reiterated TIMB’s commitment to sustainable practices, citing the introduction of the Agricultural Labour Practices Code and Contractors Compliance Administrative Framework.
The measures require registered contractors to adhere to stringent environmental standards and support socio-economic development within tobacco-growing communities.
TIMB reported a significant increase in registered tobacco growers for the 2024/25 season, at over 107 000 households.
This marked a 16 percent rise from the previous year, reflecting growing confidence in the tobacco sector.
Communal farmers constitute the largest group of growers, accounting for over 59 656 registrations, followed by A1 and small-scale farmers.
Tobacco is strategically important to Zimbabwe, as one of the country’s single largest exports, only behind gold and platinum.
Zimbabwe’s tobacco export earnings surged to US$1,3 billion by December 2024, up from US$1,23 billion over the same period the previous year.
The growth, buoyed by robust global prices and growing demand, marks the second consecutive year tobacco exports have surpassed the US$1 billion threshold.
TIMB Public Affairs Officer Chelesani Tsarwe attributed this success to the global appeal for Zimbabwe’s flue-cured tobacco, renowned for its distinct flavour profile.
“As of December, Zimbabwe exported 243.4 million kilogrammes of tobacco valued at US$1,31 billion,” she said, highlighting the sector’s resilience amidst international market fluctuations.
The bulk of Zimbabwe’s tobacco exports were destined for Far Eastern markets, primarily China and South Korea, with significant volumes also reaching Middle Eastern countries like Iran.
