Source: Govt moves to steady tobacco prices as early-season pressures ease – herald
Theseus Mauruki Shambare
Herald Correspondent
GOVERNMENT has moved to stabilise sentiment in the tobacco sector following early-season pressure on prices, with authorities stepping up interventions aimed at ensuring farmers are rewarded fairly for their crop.
This comes after tobacco opened the 2026 marketing season at levels below those recorded in the same period last year, largely driven by an influx of lower-grade leaf onto the auction floors.
However, industry players say prices are beginning to recover as better-quality tobacco enters the market, narrowing earlier disparities between auction and contract sales.
Speaking during a tour of the tobacco sales floors yesterday, Agriculture, Mechanisation and Water Resources Development Minister, Dr Anxious Masuka, said the intervention was prompted by the need to understand market dynamics and ensure farmers’ efforts are adequately rewarded.
“Today’s tour was motivated by the Government’s concern at the lower prices being offered in both contract and auction floors compared to last year,” he said.
Dr Masuka said engagements with industry players had shown encouraging signs of recovery, with better-quality leaf beginning to push prices upwards.
He said that while early deliveries had been dominated by lower leaf positions, the situation was expected to improve as the season progresses.
“The visits today (yesterday) have indicated that although we are selling lower leaf, the prices are beginning to increase. The gap between auction and contract remains and we expect that to close,” he said.
Zimbabwe is projecting a tobacco output of between 385 million and 410 million kilogrammes this season, up from about 355 million kilogrammes previously, placing additional pressure on pricing due to increased supply.
Dr Masuka said the industry was also facing heightened competition from major global producers, including Brazil, Tanzania and India, making quality and proper crop presentation critical determinants of price.
“So our farmers ought to produce a better quality crop,” he said.
He said that better-quality tobacco was already achieving prices similar to last season, while lower grades were being discounted due to oversupply and curing inefficiencies.
“What we have seen here is that better styles are being paid at last year’s prices, but it is the lower styles that are being discounted on account of a bigger crop,” he said.
Dr Masuka urged stronger collaboration between farmers, contractors and technical institutions, including the Tobacco Research Board and the Tobacco Industry and Marketing Board, to improve agronomic practices and crop presentation.
He said achieving the country’s long-term target of 500 million kilogrammes by 2030 remained feasible if quality production was prioritised.
“We must focus on producing a better flavour style crop. I still think that the 500 million kg mark that we are aiming for by 2030 is achievable,” he said.
The Minister also revealed ongoing policy reviews aimed at supporting the sector’s transition towards more sustainable curing systems.
He said the Government had instructed the Tobacco Industry and Marketing Board to review the afforestation levy for farmers not using firewood in curing, noting that current structures were penalising environmentally compliant producers.
Dr Masuka said the Government was also working with the Treasury to explore the suspension of the corporate social responsibility levy until 2029 to allow farmers to transition to more efficient curing technologies.
He said the long-term goal was to eliminate firewood curing by 2029 in line with environmental, social and governance standards demanded by global markets.
Leaf Director at Ethical Sales Floor, Mr Gardner Magandi, said early price pressure was largely due to crop positioning rather than a structural decline in demand.
“If you look at where we are in the season, it’s mainly the bottom of the plant in primings that have been coming to the floor,” he said.
He explained that lower leaf naturally attracts weaker prices, while higher positions fetch premiums as the season progresses.
“As we get up the plant, the prices start to appreciate. The top price paid here has been US$4.94 on auction,” he said.
Mr Magandi said prices were steadily improving as better-graded and well-cured leaf entered the system.
“Tobacco that is well graded, well cured and well-presented is going to fetch a good price,” he said.
At the auction floors, farmers expressed cautious optimism.
Revesai Karambanyo, a farmer from Rafingora, said he expects prices to improve as the season progresses.
“We are expecting better prices so that we can be able to go back to the fields,” he said.
Wellington Mhizha from Banket said he had previously received lower prices but was hopeful of better returns as quality leaf enters the market.
As the marketing season unfolds, attention remains on whether improving quality and policy interventions will translate into sustained price recovery for growers across the country.
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