Home » Politics » 32.4 MLN KG OF TOBACCO SOLD SO FAR IN ZIMBABWE

HARARE, At least 32.4 million kilogrammes of tobacco worth 86.6 million US dollars have been sold so far at both auction and through contrast sales since the marketing season for the crop opened last month, statistics from the industry regulator show.

Statistics from the Tobacco Industry and Marketing Board (TIMB) show that the volume of tobacco sold by Day 17 of the sales period is 44 per cent more than the 22.4 million kg worth 58.8 million USD were sold during the comparable period last year.

Tobacco is being sold at an average price of 2.67 USD per kg, reflecting a slight increase of 1.96 per cent from last year's average price of 2.62 USD per kg.

According to the TIMB, tobacco is fetching the highest price of 6.0 USD per kg at the contract floors and 4.99 USD per kg at auction sales. So far, the lowest price of 0.10 USD per kg has been recorded at both auction and contract sales floors.

This year, tobacco is being sold using the electronic marketing system to stop price collusion and sharing by buyers as well as other unscrupulous practices associated with the traditional way of buying tobacco.

The TIMB said farmers were facing several challenges, chief among them a shortage of curing fuel (coal and firewood), poor curing, grading and storage facilities. As a result, at least 31,429 bales of tobacco have been rejected at both auction and contract floors, up from only 2,981 bales rejected during the comparable period last season.

Zimbabwe anticipates an output of 202 million kg of tobacco during the 2016/17 selling season.

Source: NAM NEWS NETWORK

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