Zimbabwe: Tobacco Prices Firm

Source from:  The Herald 05/06/2011

TOBACCO prices have continued to firm at the three auction floors with the golden leaf selling at an average US$2,05 per kg. Information from the Tobacco Industry and Marketing Board shows that at the Tobacco Sales Floor, the crop is selling at an average price of US$2,09, Boka Tobacco Floors US$2,01 and Millenium Tobacco Floor at US$2,02 per kg. On day 50 of the marketing season, the highest price offered at TSF was US$4,45 per kg, while the lowest price was US$0,10 per kg. MTF's highest price was US$4,25 per kg with lowest grade of the leaf fetching US$0,20. On the same day, the contract market's highest price was US$4,80 per kg and the lowest price was US$0,10 per kg. So far a total of 61 698 371 kgs of tobacco have been sold at the three auction floors. 19,4 million kgs at TSF, 6,3 million kgs at BTF and 2,7 million kgs at MTF. According to TIMB, the contract market has sold more than 33 million kgs, while the other floors have sold 28, 6 million kgs cumulatively. Tobacco prices had fallen down at the auction floors leading to farmers disrupting sales. TSF and BTF had to suspend sales as farmers refused to sell their crop at low prices. Business resumed after meetings held by farmer representatives, TIMB officials and buyers among other stakeholders. Those who have been selling their crop since last Friday said prices had improved at the auction floors although they expected prices to continue firming as the quality of the crop being delivered also continue to improve. Zimpapers chief executive Mr Justin Mutasa who sold his first 70 bales said the prices being offered were satisfactory considering that his high quality crop fetched good prices while the low quality also had low prices. He said people meant to derail the land reform programme had caused the fall of the prices at the auction floors. "Government should investigate and take stern measures against the responsible people," he said. The price of tobacco has become a cause of concern as it is determined but buyers who may decide to lower the price. Agricultural experts say tobacco is not a controlled commodity and farmers can hold on to their crop and sell when prices would be favourable. However, this is not possible for many tobacco growers who would be in dire need of cash and can accept low prices. Enditem