Zimbabwe: Tobacco Deliveries Increase By 13%

Source from:  The Zimbabwe Daily 06/08/2017

A TOTAL of 144,2 million kg of tobacco valued $415,7 million has been sold as of Wednesday last week, as deliveries to the country's auction floors increase, latest statistics from the Tobacco Industry Marketing Board (TIMB) have shown.

TIMB statistics showed that during the same period last year 127,4 million kg valued $370,2 million was sold as of May 31, 2016.

At least 27 million kg tobacco worth $77,7 million has been sold in auction floors, whereas 117,2 million kg valued $337,9 million went under the hammer at the contract floors.

The average tobacco price was $2,88 down from $2,91 last year.

While the highest price at the country's contract floor was $6,25 in 2016, it has dropped by 4% to $6.

As has become the norm, the auction floors have maintained a $ 4, 99 ceiling.

The increased deliveries come despite the cash shortages, which have seen farmers waiting for weeks to get their money from banks despite the central bank prescribing a withdrawal limit of $1 000 per day on first sales and $500 on subsequent sales. It also comes despite glitches encountered in the use of the electronic trading system.

After receiving $29,8 million last year farmers will continue to enjoy a 5% export incentive scheme, which is coming under the $200 million facility guaranteed by the African Export Import Bank.

At least 48,6 million kg worth $228 million has been exported to various destinations during the period.

During the same period last year, 45 million kg valued at $253,4 million had been exported.

China is the biggest importer of the country's tobacco 13,8 million kg worth $114,5 million having been shipped to the Far East country.

Three auction floors — Tobacco Sales Floor, Boka Tobacco Auction Floors and Premier Tobacco Auction Floor — have been licensed to auction the golden leaf.

TIMB renewed licences for 22 A class buyers and 19 contractors for the marketing season.

Treasury has projected the 2017 tobacco output at 205 million kg up from 202 million kg attained last year.

The golden leaf is the county's second biggest foreign currency earner after gold, raking nearly $1 billion in 2016.

In 2012, 144,5 million kg valued at $540 million were auctioned, increasing to 166,7 million kg worth $610 million in 2013. Enditem