Harare (New Ziana)- Tobacco auctions have so far raked in $698 million for this season after the sale of over 200 million kilogrammes of the golden leaf, latest statistics have shown.
According to data released by the Tobacco Industry and Marketing Board (TIMB), 201,4 million kg of tobacco at $697,6 million had been sold by day 68 since the marketing season opened.
This is however down 25.1 percent from 269 million kg valued at $813 million recorded during the same period last year.
Of the total volume of tobacco sold, 190 million kg were sold via the contract system, while only 11.3 million kg came from individual farmers through the auction.
This is because contract farming accounts for more than 75 percent of deliveries, which puts pressure on the tobacco auction system.
The average price was $3.46 per kg, up by 14.5 percent from $3.02 per kg recorded over the same period last year.
At least 2673 473 bales were accepted, while 78 458 were rejected for various reasons.
In 2023, tobacco farmers produced 296 million kg, the country’s biggest ever crop, but output is expected to fall to around 235 million kg owing to the El Nino induced drought.
Tobacco is the country’s second largest foreign currency earner after gold. Farming of the golden leaf is arguably one of the success stories of agriculture in the post-land reform era.
At least 98 percent of the locally produced tobacco is, however, exported in semi-processed form and calls are growing for value to be added to the crop.
New Ziana
