Tobacco Rakes in US$52 Million

Source from:  herald.co.zw Business Reporter 06/14/2007

A TOTAL of US$52 million has been realised since the beginning of the selling season while the tobacco prices remained firm at all the auction floors. The average price per kilogramme also remained firm at US$2,16 while the average Government support price stood at $63,71 per kg. The volume of flue-cured tobacco being delivered to the country's three tobacco auction floors remained high despite the shortages of tobacco wrapping paper being experienced countrywide. Officials at the tobacco auction floors say the deliveries remained high as most farmers were battling to beat the September 30 deadline for the expiry of the top-up price awarded by the Government for quality tobacco. According to the Tobacco Industry and Marketing Board, a total of 23 784 739 kilogrammes was delivered to the auction floors by end of business on Friday (Day 31), nearly 100 percent up from the 11 658 986kg delivered to the floors over the same period last year. On Thursday (Day 30) a total of 1,1 million kg was delivered to floors under both the contract and auction systems while on Day 31 nearly 1,2 million kilogrammes were sold. As of Friday a total of 14 403 570kg was sold through contract while 9 381 169kg went under the hammer. Farmers who spoke to the Herald Business said given the support that they were getting from the Government, they planned to increase tobacco hectarage from last year's 76 000 to 100 000 for the 2007/08 season. Tobacco Growers Trust president Mr Wilfanos Mashingaidze said farmers were happy with the support price given by Government adding the prices their tobacco was fetching on the market was a good omen for the coming season. Government recently guaranteed its continued support for the tobacco industry by ensuring the timely disbursement of inputs, extension services and financing. Enditem