TOBACCO prices are expected to improve starting this week as more merchants participate in the 2026 marketing season.
Early trading on the auction floors has been characterised by low buyer participation, a development that contributed to subdued prices during the opening two days of the season.
This has seen some farmers withdrawing their tobacco bales from sale in anticipation of better prices.
During a media tour of the auction floors last Friday, authorities said the situation is beginning to stabilise as more buyers enter the market.
Only seven of the 43 registered buyers have been actively participating since the opening day.
According to statistics released by the Tobacco Industry and Marketing Board (TIMB) for auction seasonal sales as of Thursday last week, 626 742 kilogrammes of tobacco valued at US$1 786 308 had been sold.
In comparison, 1 245 242kg worth US$4 172 791 had been sold during the same period last year.
The figures represent declines of about 50 percent in volume and 57 percent in value.
On average, the price this season stands at US$2,85 per kg, down from US$3,35 recorded in the same period last year.
The highest price so far is US$5,45 per kg, slightly lower than the US$5,75 recorded last year.
A total of 8 471 bales have been laid on the floors, with 7 258 bales sold.
However, 1 213 bales were rejected, pushing the rejection rate to 14,32 percent, significantly higher than the 3,96 percent recorded in the same period last year.
Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development Professor Obert Jiri said the tobacco market usually goes through a price discovery phase at the start of the marketing season.
“When the floors open there is usually a price discovery process, where buyers and sellers test the market,” he said.
“As more merchants come in and volumes increase, the market begins to stabilise and prices start to firm.”
The contract floors, he said, were performing better and they expect the same at the auction floors as well.
TIMB spokesperson Mrs Chelesani Moyo-Tsarwe said the initial low prices were largely due to the limited number of merchants that were active when the floors opened.
“We expect that starting Monday (today), the prices will be better as more competition will push prices,” she said.
“The low turnout was necessitated by the fact that we opened the floors earlier than the traditional opening dates.”
Mrs Moyo-Tsarwe said the tobacco market was already beginning to show signs of stabilising as buyer participation increases across the auction floors.
“The Tobacco Industry and Marketing Board wishes to advise tobacco growers and all stakeholders that tobacco pricing on the market is beginning to stabilise, with increased buyer participation driving improved competition across the floors,” she said.
“Following earlier adjustments in the opening phase of the season, tobacco is now being purchased at a good price.”
Mrs Moyo-Tsarwe encouraged farmers to deliver well-graded and properly presented tobacco to maximise returns.
Meanwhile, auction floor operators said deliveries this season have improved compared to the same period last year, although low prices recorded during the opening days have affected farmer morale.
Premier Tobacco Auction Floor operations manager Mr Samuel Garapo said some of the top prices recorded so far were significantly lower compared to last season.
“On the very low keynote prices, there has been a 45 percent drop in prices compared to last season,” he said.
Mr Garapo said despite the price concerns, more farmers were delivering their crop to the auction floors.
“Deliveries improved compared to last year, but I think the morale is going down,” he said.
“Our floors are full compared to last season,” he added.
“Farmers came in anticipating to get higher prices. We feel that participation of more buyers can even help raise the level of prices so that farmers get paid.”-heral
