Govt to avail $20m to small-scale tobacco farmers

Govt to avail $20m to small-scale tobacco farmers
Published: 20 September 2017
THE Government will this summer cropping season avail a $20 million loan facility to support small-scale tobacco farmers.

Agriculture, Mechanisation and Irrigation Development Minister, Dr Joseph Made said that Treasury through AgriBank will for the first time avail a loan facility to support small-scale tobacco farmers.

"For the first time this year, Treasury working together with Reserve Bank through AgriBank, will avail a $20 million loan facility to small-scale tobacco farmers," he told ZBC news on Monday.

Dr Made said the move follows realisation that over the years contracted tobacco has become the major crop.

"This time Treasury, Ministry of Finance and Economic Development and the Reserve Bank want to correct a situation where the traditional auction floors were losing," he said.

Tobacco farmer and expert Mr Thomas Nherera told Business Chronicle yesterday that the $20 million loan facility for small-scale farmers has been discussed in other farming fora.

"We've heard about the $20 million loan facility, it has been discussed in other farming fora and it is a welcome development.

"Every bit of assistance will be very useful as it will help farmers produce a high quality crop because they will be able to buy key inputs," he said.

Mr Nherera said it was their hope that the $20 million loan facility would be accessed at interest rates below six percent.

Recent statistics from the Tobacco Industry and Marketing Board (TIMB) have shown that the crop sales have generated more than $540.9 million from 182.3 million kilogrammes that have gone under the hammer so far since the beginning of the marketing season in March.

Tobacco remains one of Zimbabwe's major foreign currency earners.

Zimbabwe exports flue-cured tobacco to 55 countries including China, South Africa, Vietnam, Lebanon, Honduras, United Arab Emirates, Brazil and India.

In 2016, Zimbabwe raked in $933.6 million from 164.4 million kg of flue cured tobacco exported across the globe.
- online
Tags: Tobacco,

Comments

Latest News

Latest Published Reports

Latest jobs