Zimbabwe: Over 1,6 Million Kg of Tobacco Sold

Source from:  The Herald 05/15/2009

AT LEAST 1,603,518 kilogrammes of tobacco worth more than US$ 4,3 million were sold at the country's three auction floors through both auction and contract systems in the first three days of trading. This is more than the 403,000kg worth US$1,2 million sold through the same system in the same period last season. According to the latest statistics released by the Tobacco Industry Marketing Board, the average price is US$3 per kg. The number of bales laid to date amounted to 19,971 and of these 17,676 were sold. Of the three floors, the Zimbabwe Industry Tobacco Auction Centre sold the highest amount of tobacco at 206,000kg worth US$597,000 followed by the Burley Marketing Zimbabwe that sold 173,000kg worth US$ 528,000. The Tobacco Sales Floor sold the least at 165,000kg worth US$470,000. Meanwhile tobacco deliveries to the floors continue although transport problems keep on affecting farmers with some few losing their crop due to the recent rains the country received. A few farmers had their bales rejected because they were wet. The tobacco selling season officially opened last week with most farmers witnessing an improvement in prices and payment methods than in the previous season. Most of the tobacco growers said they wanted money to pay-back loans, school fees and procure inputs, among other things. Last season a target of 74 million kg was set for the 2008/9 season but due to challenges such as shortage of inputs, constant electricity cuts, coal shortages and the high inflation rates production was severely affected. Some tobacco growers are getting US$1,500 cash on spot with the balance being deposited in their foreign currency accounts. Some farmers however, are getting their cash late because there are only two groups of buyers who are rotating the three floors resulting in delays in selling at some floors. Some farmers received their money for the opening day, the second day of trading because of this arrangement. This season a grower can choose not to encash any portion of his or her sales proceeds and have his entire proceeds transferred into the FCA account by informing the auction floor before the sale. Last season farmers had to spend days camping at the floors waiting to encash their cheques while the banks were giving insignificant amounts that could only be used for transport to and from the farm. Enditem