Story by Tendai Munengwa
ZIMBABWE’s tobacco sales have exceeded US$100 million since the auction and contract floors opened earlier this month, with deliveries increasing steadily as the marketing season progresses.
On Day 17 of the season, farmers continued bringing in their crops, with prices remaining favourable.
Top-quality tobacco at auction floors is fetching between US$4.50 and US$4.99 per kilogramme, while contract floors are offering a high of US$6.30 per kilogramme.
“This year started with a difference as our tobacco is fetching very good prices, I have brought 22 bales and 18 of them fetched US$4.50, this is viable to take me back to the land and expand my hectare next year,” one happy farmer said.
“We are now inspired to grow tobacco because it is paying back, the returns are good, and we are smiling all the way to the banks,” another farmers added.
A tobacco expert, Sam Garaba says while the season kicked on a low note, it is picking up with expectations high that more free tobacco will revitalise competition at auction floors.
“The national crop sold so far has reached 30 million kilograms, auction floors received 7 % of the market share. With the biometric system put in place by the Tobacco Industry Marketing Board to curb side marketing, we are likely to see free tobacco to the auction increasing to 20 % of the anticipated 280 million kilogrammes,” Garaba said.
With prices of the golden leaf firming up to US$6.30 at contract floors, farmers with free tobacco remain optimistic that the price of the golden leaf will break the US$$4.99 ceiling at auction floors.
