Tobacco farmers earn US$82million

At least 46 million kilogrammes of flue-cured tobacco worth US$82 million has been sold so far since the opening of the 2018/2019 marketing.

Tobacco Industry and Marketing Board’s latest statistics indicate that 37 million kilogrammes worth US$67 million was sold through the contract floors while nine million kilogrammes worth US$15 million was sold through the auction  floors.

Tobacco deliveries are low this season compared to the same period last year, where 72 million kilogrammes worth $206 million were sold.

Total auction sales since the 2019 marketing season opened are 9 023 656 kilogrammes worth US$15 270 483 compared to 11 599 243 kilogrammes worth US$32 782 557 sold during the corresponding period last year.

Contract sales have declined by 39 percent as 37 191 213 kilogrammes worth US$67 033 364 were sold this marketing season compared to 60 928 559 kilogrammes worth US$173 621 960 sold during the same period last year.

The highest price at the auction floors is US$4,65 per kilogramme while contractors have offered a highest price of US$5,60 per kilogramme and the lowest price has remained at US$0,20 per kilogrammes.

The first bale was bought for US$4,50 per kilogramme, which is 40 cents less than the price of the first bale last season. 

Deliveries to the floors were low during the first days of the season as some farmers adopted a wait-and-see approach, while others withdraw sales because of the low prices which were being offered. 

Meanwhile, tobacco sales have continued to increase following Government’s intervention of removing of the two percent tax from all transactions involving the crop, although they are still below the volumes sold during the same period last year.

The 2019 tobacco crop was grown under grim weather conditions characterised by late rains and prolonged dry spells especially when the crop was almost ready for reaping.

A record 252 million kilogrammes was last year delivered to the auction floors compared to previous record of 231 million kilogrammes in 2000.

This season stakeholders in the tobacco industry are expecting between 240 million and 260 million kilogrammes.