Zimbabwe: Flue-Cured Tobacco Sales Net $39,3 Million

Source from:  The Herald (Harare) June 27, 2006 06/28/2006

ZIMBABWE has so far earned US$39,3 million (about $3,9 trillion) from 20,7 million kg of flue-cured tobacco that has gone under the hammer, up 24 percent from 16,6 million kg delivered during the same period last year. According to figures from the Tobacco Industry and Marketing Board (TIMB), by end of business last Thursday, the "golden leaf" was selling at US$1,89 per kg compared to US$1,23 at the same time last season. About 10 million kg were sold under the contract system while 10,3 million kg were sold under the auction. Tobacco Sales Floor recorded the bulk of the deliveries with 4,7 million kg having been sold at the auction floor. Burley Marketers Zimbabwe and Zimbabwe Tobacco Auction Centre accounted for three million and 2,4 million kg respectively. Quality levels have also remained positive as evidenced by the smaller number of rejected bales. During the same period, tobacco growers were paid $1,3 trillion under the 35 percent early delivery bonus scheme which lapses on July 31. Meanwhile, the Reserve Bank says it will not extend the 35 percent early delivery bonus deadline. An official with the central bank said farmers should deliver their produce before the July deadline, after which the bonus would be reduced to 20 percent. "It is unfortunate that some farmers are holding on to their crop hoping that the central bank will extend the deadline. "We are not going to do that. Those farmers who want to benefit from this facility must deliver their produce now," the official said. He added that the 20 percent bonus would only apply to deliveries made between August 1 and September 30. The bonus scheme expires on the last day of September, which coincides with the start of the 2006/2007 tobacco growing season. About 52 million kg of the "golden leaf" are expected to go under the hammer this year, down from 74 million kg achieved last year. Zimbabwe expects to earn about US$100 million from tobacco this year. Enditem