Business Reporter
Tobacco deliveries for this year could top the 200 million kilogramme mark despite earlier fears that there will be a marked decline in deliveries due to erratic rainfall. An initial target of 222 million kg had been set before it was revised to between 185 and 220 million kg after the crop was affected by poor rains. However, latest figures released by the Tobacco Industry and Marketing Board shows that a total of 189,06 million kilogrammes of virginia tobacco worth $554,04 million was sold during the five-month tobacco marketing season which closed on Wednesday last week.

The seasonal total was however 8,47 percent lower than the 206,5 million kg worth $655,3 million that were sold during the same period last year.

This year’s seasonal sales were conducted at an average price of $2,93 per kg compared to 2014 sales which were conducted using an average price of $3,17 per kg.

Stakeholders in the industry believe that the 200 million kg mark is attainable since the season was still progressing despite the closure of the floors.

“We still have the clean-up sales that will be held next month and in addition contractors are still receiving tobacco from farmers,” said one tobacco buyer.

Clean up sales will be held on August 4 while contractors will continue receiving tobacco until all the tobacco has been delivered.

Of the 189,06 million, contract sales accounted 142,5 million kg at $3,09 per kg while the balance of 46,5 million kg at $2,43 per kg were sold under the auction system.

During the same time last year contract sales accounted for 156,1 million kg at $3,33 per kg while contract sales handled 50,5 million kg at an average price of $2,70 per kg.

Most of the tobacco sold under the contract system, 22,9 million kg worth $56,7 million, was handled by the Tobacco Sales Floor, where merchants were offering an average price of $2,48 per kg, followed by Boka Tobacco Auction Floors that handled 14,2 million kg worth $33,6 million at $2,37 per kg and Premier Tobacco Floors which received 22,7 million kg worth $9,4 million at an average price of $2,42 per kg.

A total of 757,123 bales were laid at all the three auction floors and of these 639,294 were sold and 117,829 were rejected. Of the bales laid 361,349 were laid at TSF, 239,514 at BTAF and 156,260 at PTF.

A total of 312,784 bales were sold at TSF, 201,384 at BTAF and 125,126 at PTF.