Category: Leaf

Zimbabwe: Tobacco Sales to Be Decentralized

Photo: Taco Tuinstra
Zimbabwe will decentralize its tobacco sales this year to avoid concentrations of people and prevent the spread of the coronavirus, according to President Emmerson Mnangagwa.
“With regards to the tobacco sector, the Tobacco Industry and Marketing Board has been sitting and consulting our Covid-19 Inter-Ministerial Taskforce, and they have come to an arrangement where the tobacco auction floors are going to be decentralized countrywide to minimize crowding,” said Mnangagwa.
“In the process, they are going to observe the measures, that is, social distancing, and also the question of accommodation will be regulated as to who comes and on which day because the areas of concentration will be limited in terms of the centralization.”
The tobacco marketing season, which normally starts mid-March, was put on hold because of the health threat posed by Covid-19.
Farmers are expected to get half their earnings in U.S. dollars, with the rest in local currency at the prevailing interbank rate.
The date for the opening of the auction floors is yet to be announced.

April 21, 2020
Lilongwe Tobacco Market to Open April 20

Photo: Taco Tuinstra
The Kanengo tobacco market in Lilongwe will open on April 20 despite the coronavirus lockdown that takes effect in Malawi on at midnight on Saturday, reports The Nyasa Times, citing the Tobacco Commission.
According to the commission’s corporate and business development manager, Hellings Nasolo, Health Minister Jappie Mhango exempted the tobacco market when he announced the lockdown.
“We will go ahead to open the tobacco market as scheduled. However, we have put in place strict measures to ensure that our farmers and buyers are not infected by the disease,” he said.
Most of the tobacco buying companies’ staff members are operating from home in view of the coronavirus.
The Tobacco Commission is yet to announce dates for the opening of the tobacco markets at Chinkhoma, Limbe and Mzuzu.
April 17, 2020
India Leaf Exports Expected to Dip by One-Fifth

The current social and economic lockdown due to the Covid-19 crisis in India will cause tobacco product consumption and exports to decline by 20 percent this year, according to the Tobacco Board. The board added that it may ask tobacco growers to reduce its production due to the drop in demand.
A member of India Tobacco Association (ITA) said, “Like any other industry, the tobacco industry also came to standstill due to lockdown. Tobacco auction in AP, which began earlier, was also suspended. It is expected to begin after April 20. Due to delay in supplies and also health advisories on Covid-19, there may be muted demand this year. Tobacco Board expects about 20 percent dip in demand this year.”
Last year, leaf production in Andhra Pradesh and Karnataka totaled 124 million kilograms and 103 million kilograms, respectively. About 65 percent of the total amount of tobacco leaf grown in India is exported.
The ITA spokesperson added, “The foreign buyers are yet to come to India and physically inspect the product and place orders, though initial discussions on requirement and quality parameters are over. They changed their travel plans as there is complete lockdown in most of the countries.”
April 17, 2020
Zambia to Protect Farmers Against Virus

Photo: Taco Tuinstra
The Tobacco Board of Zambia (TBZ) says measures have been put in place to protect farmers from contracting Covid-19 during the marketing season.
Chief Executive Officer James Kasongo said the booking of tobacco for sale during the marketing season will be done electronically—through email or text messaging.
The TBZ bright leaf system will book tobacco at Lusaka main sales floor and will be linked to the organization’s regional offices, according to Kasongo.
April 16, 2020
Zimbabwe: Stakeholders Set Covid-19 Market Guidelines

Photo: Taco Tuinstra
The Tobacco Industry and Marketing Board (TIMB) has been working to set guidelines to prevent the spread of Covid-19 during the tobacco selling season.
The board is expected to enforce a “deliver today, sell tomorrow” guideline, and only 20 farmers will be allowed to complete the sale of each batch before moving to the next one. Farmers will not be allowed to sleep overnight at the market, temperatures and IDs will be checked at the gate, and handwashing stations will be installed at the entrances.
“Tobacco is bought in the absence of the growers who shall come in to review after the sale. Floor marshals shall be deployed by the industry to ensure that rules set by the stakeholders are followed. They shall conduct random checks on gate passes and maintain the permitted number of people in a gathering,” the guideline proposal states.
Nonbooked tobacco will not be accepted, and sellers will be turned away.
April 15, 2020
Uganda to Tax Unprocessed Leaf Tobacco

Photo: Taco Tuinstra
The Ugandan government has proposed an amendment to the 2015 Tobacco Control Act to tax processed and unprocessed leaf tobacco.
Under the bill, processed and unprocessed tobacco consigned out of Uganda would be taxed at a rate of $0.80 per kg. The tax would be paid by the consigner to the Uganda Tobacco Authority.
The Uganda National Health Consumer’s Organization (UNHCO) has proposed an amendment to the Excise Duty Act of 2019 to remove tax exemptions and incentives to conform with the amended section of the 2015 Tobacco Control Act.
UNHCO has suggested a uniform tax tier with a specific rate, an excise duty of UGX250,000 ($66.48) per 1,000 cigarettes, and the elimination of soft cap and hinge-lid packaging. The organization has asked the government to increase tobacco taxes beyond 70 percent in conformity with the World Health Organization tobacco tax standards.
April 14, 2020
Zimbabwe: Stakeholders to Discuss Tobacco Season

Photo: Taco Tuinstra
Tobacco stakeholders will have an emergency meeting to discuss the opening of the tobacco market in Zimbabwe after initial proposed guidelines to prevent the spread of Covid-19 were rejected.
The proposed opening date is April 22.
Zimbabwe is currently under a 21-day lockdown due to Covid-19, which has set back preparations for the tobacco selling season. Plans need to be approved to prevent crowding on the tobacco selling floors that would aid in the spread of Covid-19, and computer systems may need to be adjusted to allow for growers to be a part of the process virtually—transparency is important to avoid tobacco being lost to middlemen. Precautions such as those implemented in Malawi would be necessary.
The Ministry of Agriculture will decide whether it is plausible to open the market on April 22.
Tobacco is one of Zimbabwe’s largest foreign currency earners.
April 9, 2020
Malawi Markets to Open Amid Covid-19

Photo: Taco Tuinstra
Licensed tobacco markets will open this month, following strict guidelines to help prevent the spread of Covid-19.
The Malawi government earlier decided that tobacco markets should open to protect growers. The Ministry of Agriculture and Food Security has listed April 20 as the opening date for the markets.
Sales will begin at the Lilongwe selling floor on April 20; at the Chinkhoma selling floor on April 22; at the Limbe selling floor on April 27; and at the Mzuzu selling floor on May 4.
To help prevent the spread of Covid-19, entry will be restricted to those who have “critical tasks to perform”; those entering will have to wash their hands at the gate with 0.05 percent chlorinated water and wipe their feet on a chlorinated mat; everyone will have their temperature taken upon entry; entrants must have an ID, wear a uniform and wear a face mask; social distancing will be adhered to; and no more than 100 people will be allowed on the floor at a time.
Once individuals have finished their business, they will be asked to leave immediately. Tobacco bales will not be re-laid, but Saturday contract sales will continue with willing tobacco-buying companies. Growers will not be allowed to witness sales.
April 8, 2020
Malawi President Orders Tobacco Markets to Open

Photo: Taco Tuinstra
Malawi President Peter Mutharika has ordered tobacco markets to be opened and allowed to operate without disruption to protect small farmers and bolster foreign currency receipts. Tobacco is Malawi’s primary foreign currency earner.
The order is part of a stimulus package aimed at mitigating the impact of the coronavirus outbreak, which also includes measures such as tax breaks, fuel price reductions and increased risk allowances for healthcare workers.
“The coronavirus attack has a huge negative impact on the economy and businesses everywhere,” Mutharika said. “There are many businesspeople and industry players who are uncertain about the situation as it is unfolding. I know that everyone is worried. Therefore, [the] government will take measures to protect jobs and incomes, protect businesses and ensure continuity of the supply chain and the survival of the economy.”
Mutharika and his cabinet will also take a 10 percent pay cut to help fight the spread of the coronavirus.
As of Saturday, Malawi had four confirmed cases of Covid-19.
April 6, 2020
Uncertainty About Zimbabwe Sales Season

The Tobacco Sales Floor in Harare
Zimbabwe’s tobacco marketing season will open on April 22, according to Patrick Davenish, chairman of the Tobacco Industry Marketing Board (TIMB).
The dates may change depending on the coronavirus pandemic.
“The position is that we have set the tobacco marketing season dates to the 22nd of April 2020 and what that means is that it gives us a month to monitor developments regarding the virus,” Davenish told reporters.
“If it becomes worse we may come up with other options depending on the situation on the ground.”
The TIMB is considering conducting sales with a small number of farmers while the Zimbabwe Tobacco Association was conducting awareness campaigns on farms.
Patrick Dutiro, a member of Parliament’s agriculture committee, suggested the decongestion of auction floors during the selling season and payment of farmers in foreign currency to discourage them from going to banks to withdraw their money in local currency.
Tobacco is one of Zimbabwe’s major sources of foreign currency and suspending the marketing season could translate to severe loss.
April 3, 2020