THE tobacco industry has raked in $433 million from the sale of 135 million kg of the golden leaf, but the sector is facing curing facilities challenges, the Tobacco Industry and Marketing Board (TIMB) has said.
VENERANDA LANGA
TIMB chairperson Monica Chinamasa told the Parliamentary Portfolio Committee on Agriculture, Lands and Mechanisation on Tuesday that they have since engaged the Tobacco Research Board to come up with rocket bands for curing purposes.
“So far, at least 135 million kilogrammes of tobacco have been sold earning farmers $433 million.
“Our challenges are on curing facilities, but we are working with the Tobacco Research Board to come up with rocket bands that are easier to construct for curing purposes. Chinhoyi University of Science and Technology is also inventing a tunnel system which is fuel efficient.We also want to develop low pressure boilers,” Chinamasa said.
The committee is chaired by Zanu PF MP for Mbire David Butau.
TIMB chief executive officer Andrew Matibiri told the committee a rocket barn fund will be rolled out to conserve forests and try to reduce deforestation caused by tobacco farmers.
“This year banks injected $360 million into tobacco production alone and we estimate farmers will realise $1 billion,” said Matibiri. Boka Auction Floor chief executive officer Rudo Boka said auction floors faced challenges with Zimra due to the Income Tax Act which stipulated that 1, 5% of the value of tobacco sold by merchants should be levied.
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“In implementing this law Zimra demands the levies within 24 hours of sale and yet the Tobacco Marketing Act gives buyers 48 hours to comply. Auctions are forced to borrow from banks in order to pay the amount,” she said.
Premier Tobacco Marketing Floors managing director Philemon Mangena said the pricing matrix of tobacco was affecting auction floors as farmers now preferred contractors.
“Banks stopped funding farmers and it is contractors that fund them, which kills business at auction floors,” he said.
