Zimpapers Logo

Runyararo Muzavazi Herald Reporter
Tobacco sales have reached $33 million since the start of the marketing season 10 days ago, surpassing $23 million realised during the same period last year.

This is an increase of 46 percent.

The sales are likely to surpass the projected season target of 205 million kilogrammes following an impressive delivery rate averaging one million kgs per day at the auction floors.

Read more:

• Tobacco sales reach $21,7m
• Day 1 tobacco sales rake in $423 000
• Tobacco selling season opens on high note

This year’s crop has fetched an average price of $2,56 per kg, representing a 7 percent increase on last year’s price of $2,40 per kg during the same period.

Figures released by the Tobacco Industry and Marketing Board (TIMB) show that 176 848 bales have been sold so far, an increase from last year’s 117 962.

This is an increase of nearly 50 percent.

TIMB yesterday said 13 million kgs of the golden leaf have so far been sold at auction and contract floors since the beginning of the marketing season.

The highest price was $6 per kg.

So far, 13 618 bales have been rejected, compared to 2 981 last year, mainly for being underweight, badly handled or being oversized.

A total of 190 466 bales have been laid.

TIMB said 39 million kg have been exported, earning the country about $192 million.

A number of challenges have been encountered since the season begun.

“There is poor grading and bale presentation, increase in rejection of wet bales due to incessant rains, slowness of the e-auction system, as well as the issues of banks failing to meet the withdrawal limit as stipulated by RBZ.”

TIMB said there has been an upward trend in the seasonal average prices from $2,20 in 2015 to $2,56 in 2017.