Business Reporter
NEARLY $400 million worth of tobacco has so far been sold at the auction floors since the beginning of the marketing season in March, official figures show.

The Tobacco Industry and Marketing Board (TIMB) indicated that as of May 23, 137,4 million kilogrammes of the golden leaf were sold at the auction floors where 31 buyers were buying the crop. TIMB also indicated that the crop was being sold at an average price of $2,90 a kg.

The bulk of the crop was coming through contract arrangement as 116,1 million kg of tobacco were sold at a value of $338,7 million were sold under contract arrangments compared to 21,2 million kg worth $59,8 million.

In the report, TIMB also indicated that 304 230 bales were sold under the auction system with 24 903 of the total bales laid showing defects while 5 160 had prices disputed.

During the same period last year, a total of 331 bales were sold with 28 865 of them being recorded as defective bales while 10 630 had prices disputed.

Under the contract arrangement, bales so far sold were 1,5 million with 39 716 of them having defects while 18 100 had prices disputed. In the same period last year, bales delivered through the contract arrangement were 1,2 million with 46 976 of them having defects while 12 766 had prices disputed.

This year, Zimbabwe expects tobacco output to increase by close to six percent to 200 million kg from 189 million kg last year. In the 2017/18 cropping season, total hectarage planted under tobacco decreased to 104 397 hectares from 110 518 ha in the prior year.

Tobacco is Zimbabwe’s second largest foreign currency earner after gold. Zimbabwe exports 98 percent of its flue-cured tobacco across the globe and this year it expects to earn $1,2 billion from the tobacco compared to $904 million last year.

The countries buying the golden leaf include China, South Africa, Belgium, United Arab Emirates, Indonesia, France, Hong Kong, Spain, Tanzania, Taiwan, Nigeria, Sudan and Russia.