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Oliver Kazunga, Senior Business Reporter
TOBACCO sales have reached US$415,3 million from 167,4 million kilogrammes delivered at the auction floors since the delayed start of the marketing season in April, official figures show.
Traditionally, Zimbabwe’s tobacco selling season starts between February and March but this year the marketing season was delayed due to the outbreak of the Covid-19 pandemic as TIMB was required to put in place preventive measures to contain the spread of the disease at the auction floors.
According to latest weekly report from TIMB, during the comparable period last year, 209,4 million kg of tobacco were sold, generating US$403 million. Contract sales have so far generated US$391,3 million from 158,9 million kg that were sold while the crop delivered under an auction system has raked in US$24 million from 8,5 million kg sold.
The crop delivered under contract arrangement fetched an average price of US$2,46 a kg while the average price for the auction system was US$2,82 per kg. TIMB also indicated that so far 2 121 894 bales were delivered compared to 2 807 742 during the comparable period in 2019.
Of the total number of bales so far laid, 2 046 668 bales were sold while during the same period last year, 2 637 837 bales were sold. The golden leaf is the country’s second largest foreign currency earner after gold. Zimbabwe generates US$1 billion annually from tobacco exports and the sector has in recent years been pivotal in sustaining the economy through improving the much-needed foreign currency reserves.
Much effort is put on value addition of the crop before it is exported. Zimbabwe exports its tobacco mostly to China, South Africa, Belgium, United Arab Emirates, Indonesia, Sudan and Russia among others. The country exports 98 percent of the golden leaf produced locally with tobacco receipts from the foreign markets expected to reach $1.2 billion this year compared to $904 million achieved last year.
-@okazunga
Online Reporter