High production costs dog tobacco sector

THE Tobacco Industry Marketing Board (TIMB) says production of the golden leaf faces viability challenges emanating from a high cost of production fuelled by currency challenges obtaining in the country.
TIMB chief executive Meanwell Gudu told a media briefing this week that the volatility in the currency market was a major concern for farmers.
“The cost of production is quite high, with prices being indexed to the parallel market rate while the US dollar component is increasing as well.
“For example, workers are now demanding salaries in US dollars, which is a cost that needs to be met,” Gudu said.