Tobacco earnings hit US$9,7m mark

Some3 of the bales at the Tobacco sales floor in Harare yesterdayBusiness Reporter
TOBACCO farmers have so far earned US$9,7 million after the sale of 3,6 million kilogrammes of flue-cured tobacco since the season began last week.
The tobacco was sold at an average price of US$2,67 per kg. This is marginally lower than the US$10,5 million that was earned from the sale of 3,2 million kg at an average price of US$3,22 per kg during the same period last year. The tobacco selling season got off to a slow start this year as most farmers have been rejecting prices offered at the auction floors. The impasse over prices has seen some farmers withholding their crop accusing buyers of colluding to buy their tobacco for a song.

TIMB licensed 20 auction floor buyers this season compared to 15 last year, however, its understood that not all buyers are active. Of the US$9,7 million, US$4,9 million was realised through the auction system after the sale of 2,06 million kg at an average price of US$2,40.

The balance of US$4,7 million was received after 1,5 kg were sold under the contract system at an average price of US$3,04 per kg. Of the 2,04 million kg sold under the auction system, 1,02 million kg worth US$2,5 million was sold at Tobacco Sales Floor, 610 271 kg worth US$1,4 million was sold at Boka Tobacco Floors and 430 883 kg worth US$938 989 at Premier Tobacco Floors.

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  • soxx

    My comment i$ on the picture in particular the mom and her baby. All the million$ mentioned in the article – I’d have expected that mom, at lea$t, looking the money (rich-looking) coming from the tobacco farming and $ale$. $eem$ most of our $mall $cale farmer$ labour for naught.

  • Kushinga

    How many US$100s millions in missing taxes will be required to import 300,000 tonnes of maize and other grain from SA and Zambia that farmers have neglected to grow, concentrating on “cash” tobacco? Will Government rely once again on charity from the international community to save 2.2 million starving Zimbabweans, compensating for their inadequacies and catastrophic agricultural policy?