Online Reporter
Edgar Vhera
Specialist Writer – Agribusiness
THE volume of tobacco bale rejection on the auction floor has dropped 74 percent to 15,53 percent on day four from 60,71 percent on day one as prices have started firming.
Statistics from the Tobacco Industry and Marketing Board (TIMB) show that self-financed growers offered 1 148 bales on the first day, but only 451 were sold, with 697 rejected.
The highest and lowest prices on day one was US$4,60 and US$0,20 per kilogramme respectively, with the average price settling at US$1,60 per kg.
On day four, the volume of bales laid for uncontracted growers rose to 60 percent to 1 842 from day one’s 1 148.
A total of 1 556 bales were sold while 286 were rejected. The volume sold rose 229 percent to 121 155 kg on day four from 36 852 kg on the first day.
The value also increased 242 percent to US$201 788 from US$59 125. The highest price rose to US$4,65 per kg while the lowest prices also surged to US$0,50 on day 4 with the average price rising to US$1,67.
TIMB said the tobacco market continued to show encouraging price improvements as a result of increased buyer participation.
“Tobacco sales floors are open for a new week with increased buyer participation and prices are expected to improve as sales move from primings to the better-quality upper leaf positions.
“Tobacco prices at auction floors are determined through transparent open bidding by multiple buyers competing for the crop in the presence of farmers and other stakeholders,” read a TIMB X post.
TIMB said individual prices may vary depending on factors such as grade, quality and presentation. However growers not satisfied with the price offered have the right to withdraw their tobacco and sell it on a later day.
Mazowe farmer, Mr Joseph Chiwoko of Marovanyika Village under Chief Chiweshe, said he was happy with the prices he received for his crop.
“I brought five bales and received an average price of US$4,40 per kg. This was a good price, even though I wanted US$5. I was advised that very high prices are only possible with good grading and presentation,” he said.
