Debt-ridden Premier Tobacco Auction Floor has retained its license to operate in the forthcoming tobacco marketing season which opens on March 4, despite failing to remit tobacco levies of about $1 million in the previous season.
The auctioneer reportedly owes a local bank about $400,000 and over $1 million in tobacco levies to the Tobacco Industry and Marketing Board, Tobacco Research Board and the tax collector.
However, TIMB on Friday said Premier Tobacco is one of the three auctioneers licensed by the regulator this season, along with Tobacco Sales Floor Limited and Boka Tobacco Auction Floor.
“All stakeholders are advised that the 2015 auction tobacco marketing season opens on Wednesday 4th March 2015,” TIMB said in a statement, adding contract sales would begin on March 5.
Sales bookings will open on the 18th of February and deliveries accepted as from the 25th of this month.-The Source
The marketing season, which normally starts in mid-February, opens late this year following delayed rains and subsequent late harvesting by farmers.
This year Zimbabwe projects to produce up to 220 million kilograms of tobacco.
In 2014, total flue tobacco amounted to 216 million kg, earning the country $684 million.
TIMB said last week that over 88 640 farmers had registered to grow the crop this season compared to 88 281 in 2014.
The number of companies registered to finance tobacco contract growing also increased to 20 this season from 16 last year, which is also anticipated to push up volumes.
New farmers are trekking to tobacco production, which has become the most lucrative crop, dumping traditional ones such as cotton and maize with lower returns.