Timothy
Business Writer
Zimbabwe has so far earned US$124,26 million from the sale of 1,65 million kgs of tobacco in 36 days, a 152 percent improvement compared to last year’s US$93,07 million from 3,9 million kgs, statistics released by the Tobacco Industry and Marketing Board (TIMB) show.
An estimated 115,9 million kgs of the tobacco delivered came from the contract crop, with just 7,1 percent being sold on the auction floors.
Authorities are working hard to improve the auctioning system with Government announcing last week it was moving in to fund tobacco growing in coming seasons.
Buyers offered a highest price of US$6,70 per kg at the contract floors, while the highest price at the auction floors remained at US$4,99 per kg.
In the same period last year, tobacco generated US$9,2 million from the sale of 3,9 million kilogrammes.
At this stage, 1,707,841 bales have been laid and 1,652,103 sold as compared with 1,229,152 laid during the corresponding period last year, with 1,186,092 bales sold during the same period last year.
The majority of farmers in the country are currently producing tobacco under contract farming.
The contract farming arrangement sees tobacco farmers being guaranteed a timely supply of inputs and, in some cases, funds to pay workers.
The farmers are given technical advice because the contractors want their crop grown according to market requirements.
Last year, production of the golden leaf reached 184 million kgs. And this year TIMB has projected that production could reach 200 million kgs due to the positive rainfalls.
Online Reporter