Zimbabwe: Tobacco Volume Sales Improve by 10%

Source from:  NewsDay 06/23/2016

The volume of tobacco sold grew by 10,01% to 138,6 million kg as of Friday compared to the same period last year, latest statistics from the Tobacco Industry and Marketing Board have shown.

TIMB statistics showed that 138,6 million kg, valued at $403,7 million, had been sold up from 126 million kg valued at $336,3 million recorded during the same period last year.

Tobacco is being sold for an average price of $2,91 per kg, down from $2,94 per kg over the same period last year.

The total auction sales stood at 26,2 million kg valued at $67,3 million, while contract sales were 112,3 million kg at $336,3 million.

At least 16 970 809kg went under the hammer at Tobacco Sales Floor, while Boka Tobacco Auction Floors (BTAF) and Premier Tobacco Auction Floor (PTAF) sold 6 020 794kg and 3 273 977kg, respectively.

In the period under review, TSF bought tobacco at an average price of $2,61 per kg, BTAF at $2,42 per kg and PTAF at $2,63 per kg, while the contract average price per kg was $2,99.

At least 1 905 449 bales were accepted, while 119 093 were rejected for various reasons.

The country is expected to record a 20% decline in tobacco output this year from 198 million kg produced in 2015.

Tobacco sales are expected to inject fresh liquidity into the economy. This year's sales started off on a low note after a new system, where farmers' money was deposited into their bank accounts, faced challenges, as banks did not have adequate cash. Tobacco is one of the top foreign currency earners in the country. Enditem