Tobacco sales drop 27 percent

THE volume of tobacco sold since the opening of the country’s auction and contract floors has gone down by 26,88 percent to 155,8 million kgs, statistics from the industry regulator released show.

During the comparable period last year, a total of 213,1 million kgs had been sold.

Tobacco is the country’s second largest foreign currency earner after gold. Farming of the golden leaf is arguably one of the success stories of agriculture in the post-land reform era.

In an update on day 50 of sales on Tuesday, the Tobacco Industry and Marketing Board (TIMB) said incomes had also gone down 14,34 percent to US$548,3 million from US$640,1 million recorded in the same period last year.

Of the total volume of tobacco sold, 146,9 million kgs were sold via the contract system while only 8,9 million kgs went under the hammer.

According to the statistics, tobacco deliveries had also gone down to 212 432 bales from 2 769 524.

The average price for both auction and contract floors stood at US$3, 52 per kg, which is 17,29 percent firmer than the US$3 of the 2023 marketing season.

The highest price stood at US$6,99 per kg while the lowest was at $0,10.

Sales are being conducted in Harare as well as five decentralised centres in Karoi, Mvurwi, Bindura, Marondera and Rusape.

At least 98 percent of the locally produced tobacco is exported in semi-processed form and calls are growing for value to be added to the crop.

The Government is concerned that Zimbabwe still exports 98 percent of tobacco in raw form and in the process exporting jobs. – New Ziana