Tobacco Sales Net US$50m

Source from:  By Martin Kadzere 07/05/2006

ZIMBABWE has earned US$50 million (about $5 trillion) from 25,8 million kg of flue-cured tobacco that has gone under the hammer as at June 30. Tobacco worth US$100 million is expected to be auctioned this season from the projected 52 million kg. Close to $2 trillion has also been paid out under the 35 percent early delivery bonus, which lapses at the end of this month. Figures from the Tobacco Industry and Marketing Board (TIMB) show that 25,8 million kg have already been sold, outpacing last year's figure of 21,9 million kg valued at US$28 million. According to the TIMB statistics the "golden leaf" was selling at an average price of US$1,93, up from last year's US$1,27 million. Fifty-one percent of tobacco was sold through the contract system while the balance was sold by auction at the three auction floors with the Tobacco Sales Floor, taking the lion's share (22 percent) followed by Burley Marketers Zimbabwe (15 percent) and Zimbabwe Tobacco Auction Centre (12 percent). Experts said this year's season was encouraging as farmers were delivering their produce early, which will give them enough time to start preparations for the next season. Agribank projects that 90 million kg of the "golden leaf" would be produced in the 2006/07 season provided inputs are disbursed timeously. Enditem