• Fri. Apr 19th, 2024

Tobacco sales hit US$12.92 mln in 3 days

ByETimes

Mar 19, 2024 #Tobacco

By Stephen Chandisareva

HARARE – At least 4.14 million kilograms of tobacco worth US$12.92 million have been sold so far at auction and contract floors in the country since the selling season opened on March 13 this year, statistics from the industry regulator show.

In light of the prevailing economic environment, local farmers anticipated an improvement in pricing. Farmers are paid 75% in USD, down from 85% in 2023. 25% is paid in local currency at official exchange rates.

As a result of the El Nino-induced drought, most farmers did not get the expected yields there, for it is likely that those in credit will not be able to settle their loans, leaving them in credit.

Of the total volume of tobacco sold so far this year, at least 3.65 million kgs went through the contract system, while the remainder went under the hammer.

At US$12.92 million, tobacco sales rose 216.08% from US$4.08 million recorded in the comparative period last year.

The average price at both the auction and contract floors stood at US$3.12 per kg, representing an 18.49% rise from US$2.63 per kg in the 2023 selling season.

The crop has so far fetched the highest price of US$6.50 per kg, while the lowest has been US$0.10 per kg.

Rejected bales further increased by 15.75% to 1,176 this year.

Zimbabwe’s tobacco industry has started off the 2024 marketing season on a positive note, with the first bale fetching an impressive US$4.92 per kg.

This marks a 13.10% increase from the US$4.35 per kilogram that was recorded during the opening of the 2023 season.

By ETimes

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