Zimbabwe: Tobacco Sales Rake in $500m

Source from:  NewsDay 07/10/2012

Flue-cured tobacco worth $485,9 million from 131 million kilogrammes of the golden leaf have been sold since the beginning of the marketing season, latest figures have shown. At least 133 million kilogrammes of tobacco are expected to be sold during this year’s marketing season. Latest figures from the Tobacco Industry and Marketing Board show that by day 97, sales for the current selling season were 6% higher than those of the comparative period last year. The cash crop was sold at the country’s four auction floors at an average price of $3,70 per kg The $485,9 million earned so far indicates a 44% increase from $337 million during the same period last year. According to the TIMB, close to 1,6 million bales have so far been sold compared to 1,5 million sold during the same period last year. The figures show that 74 865 bales have so far been rejected compared to 109 189 bales recorded during the same period last year. Government projections indicate that the country’s agricultural sector is expected to grow by 11, 6% this year buoyed by a growth in tobacco output. However, an interim report on Medium-Term Plan (MTP) implementation progress report shows that tobacco output has been revised downwards due to the decline in the planted hectarage caused by lack of funding."For 2012, the MTP was targeting 180 million kg, however, tobacco output for 2012 has been revised downwards to 130 million kg. This output is 28% lower than the MTP target," the report reads. The report said the growth target for the agriculture sector had been revised downwards due to the poor agricultural season. Experts say Tobacco prices have been competitive owing to the quality of flue-cured tobacco produced this year, with many farmers expressing optimism that they would be able to go back to the fields next season. Enditem