Story by Tendai Munengwa
PRICES of the golden leaf at the auction floors have firmed to an average of US$3.85 per kilogramme, compared to US$3.43 at contract sales, in a move set to incentivise farmers to grow more tobacco.
The tobacco bidding system is proving to be a force to reckon with, with auction floors recording a 10 % increase in average price, compared to a suppressed one percent at contract floors when equated to the same period last year.
“This is a 10 % increase in price for the farmers who sell at auctions, compared to the same period last year where the average price was pegged at US$3.56. While at contract, this means a one percent increase from US$ 3.40 to a suppressed US$3:43,” Tobacco Marketing Expert, Sam Garaba said.
Prices of the golden leaf remained firm since the floors opened early March this year, a development described by farmers as lucrative when compared to previous years.
“We are happy that this year there is a big difference in terms of the pricing matrix- our primings are fetching good prices and as we bring our best leaf, we expect to break the US$4.99 sealing,” one farmer from Banket said.
“The prices being offered here, especially at auction floors give us farmers with free tobacco the zeal to grow more next year,” another tobacco farmer said.
So far deliveries for this year now stand at 123 million kilogrammes compared to 122 million kilogrammes racked-in during the same period last year.
