By ZBC Reporter
ZIMBABWE’S foreign currency inflows have been boosted after tobacco worth more than 270 million United States dollars has been sold so far during the gold leaf marketing season.
With the marketing season having reached the halfway mark, improvement in prices compared to last year has seen the value of sales on a high.
Tobacco Industry and Marketing Board (TIMB) chairperson, Patrick Davenish says the improved sales are also expected to positively affect foreign currency inflows.
“It is a big plus to the economy and we anticipate the value of the commodity to continue increasing,” he said
However, the Tobacco Association of Zimbabwe President, George Seremwe has called on the central bank to provide back payments for tobacco producers who sold the commodity before the introduction of the foreign exchange auction system.
“We really would like to appreciate them if they can really focus on what we are saying it should reflect on the value of the deliveries,” said Seremwe.
The TIMB data shows that prices at the auction floors have increased by more than 30 percent compared to the same period last year with smallholder farmers dominating production volumes.
Zimbabwe’s 2019 tobacco output reached a record-breaking output of 252 million kilograms, according to statistics from the Tobacco Industry and Marketing Board (TIMB).
This was despite the fact that the crop was grown under drought conditions marked by late rains and prolonged dry spells.
Tobacco generates over 30 percent of the country’s foreign currency inflows bringing in over US$600 million annually