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Edgar Vhera-Agriculture Specialist Writer

A CUMULATIVE total of 9 million kilogrammes of tobacco worth US$27 million has been sold on the country’s auction and contract floors as the 2023 tobacco marketing season reached Day 8 of trading.

The average price was US$2,96 per kilogramme, with auction sales recording US$2, 68 per kilogramme while the contract floors had US$3,02 per kilogramme. 

Statistics from Tobacco Industry and Marketing Board (TIMB) show that there was a 14 percent decline in the value earned from tobacco sales by this day to US27 million from US$31 million in 2022. 

This year’s better prices, compared to those from last year, have seen the average price rising eight percent from US$2,74 to US$2,96 this year. 

Government’s 85 percent foreign currency retention has resulted in growers pocketing US$23 075 493 in foreign earnings with the balance of US$4 072 146 paid in local currency at the prevailing interbank rate on the different dates.

The mass of tobacco sold by close of day eight declined 20 percent in comparison to the previous season.

There has been a 15 percent increase in the bales’ rejection rate.

The lowest price earned this year is the same as last year’s at US$0,10 per kilogramme.

The highest price earned at the contract floors has so far been US$5,50 per kilogramme, which is lower than last year season’s US$6,50. At the auction floors the highest price so far is US$4,99.

Preliminary projections from various stakeholders on the expected volumes for the season point towards 230 million kilogrammes compared to 213 million kilogrammes recorded last season.