Tobacco sales boost Zim liquidity
TOBACCO sales continue to boost foreign currency earnings for the economy with the country earning more than US$436 million from 159 million kilogrammes sold since the beginning of the selling season in April this year.
The golden leaf is one of the major foreign currency earners that has over the years supported the country with liquidity.
According to the latest report from the Tobacco Industry and Marketing Board (TIMB), a total of 159 million kilogrammes of tobacco have so far gone under the hammer, raking in US$436,2 million.
During the same period last year, 132,7 million kgs of the golden leaf were sold generating US$319,1 million.
In terms of average price, the crop was being sold at US$2,73 a kg compared to US$2,40 during the same period last year.
This year, tobacco output is expected to increase by eight percent to 200,2 million kg, from the 184 million kg produced last year and latest statistics implies that over 75 percent of the crop has gone under the hammer.
TIMB is on record saying the selling season has been progressing well with farmers happy. Zimbabwe Commercial Farmers Union president, Dr Shadreck Makombe, says the marketing season has been smooth except for some few glitches in part of the contract system.
While the selling season is underway, preparations for the next cropping season have begun, with irrigated farmers having already started seedbeds. Most irrigated tobacco farmers are contracted growers and get inputs on time.
However, most smallholder farmers who rely on rain-fed agriculture are expected to start sowing next month and August.
Tobacco farming contributes significantly to improving the livelihoods of many people especially those in rural areas, as it now involves thousands of farmers and employs many people. The growing wealth of communities and the marketing decentralisation following the Covid-19 pandemic has seen rapid growth in the swathe of smaller towns across the tobacco belt.
The major tobacco growing regions are Mashonaland West, Mashonaland Central, Mashonaland East, Midlands, Manicaland, Masvingo provinces while Matabeleland is slowly venturing into the sector.-ebusinessweekl.c.w
