Tobacco growers earn US$460m

Lynn Munjanja Herald Reporter
Tobacco growers have earned a cumulative US$460 million from the sale of flue-cured tobacco, with the bulk of the crop being sold at contract floors. The 2019 tobacco marketing season opened in March and deliveries have continued although average daily volumes have declined.

Tobacco Industry and Marketing Board (TIMB) latest statistics show that by Day 84, farmers had sold 203 million kilogrammes worth US$407 million through the contract floors, while 31 million kilogrammes worth US$54 million were sold through the auction floors.

The highest price at contract floors is at US$5,75, while at auction floors it is US$4,99 and the lowest prices at both floors has remained at US$0,10 with the average price being US$1,97.

Tobacco production has been on the increase in the past years.

The golden leaf is the country’s second largest foreign currency earner after gold. There has been some improvements in the deliveries by farmers to the auction floors, especially after Government scrapped the two percent charge on all transactions.

The 2019 tobacco crop was grown under grim weather conditions characterised by late rains and prolonged dry spells, especially when the crop was almost ready for reaping.

Tobacco production has been on the increase in the past years, with Government coming up with programmes to promote value addition to increase foreign currency earnings through increased export.

The Second Republic’s thrust is to develop infrastructure that supports a thriving and open economy, which is capable of creating new opportunities for investors and more employment.