Tobacco deliveries set to hit 200m kg mark
http://www.theindependent.co.zw/
Friday, 20 May 2011 10:02
Bernard Mpofu
GOVERNMENT sees tobacco deliveries hitting the 200 million kgs mark this
marketing season.
The new forecasts becomes the first revised figures since Finance minister
Tendai Biti made projections in the national budget statement last December.
Government also expects excise duty collections from tobacco to boost the
fiscus as production of the cash crop resurges from economic contraction.
Excise duty generated from the golden leaf rose to US$2,6 million in March
from US$3 253 in January, Biti said.
Biti sees tobacco deliveries to the country’s auction floors —TSF, Boka and
Millennium — surpassing the initially projected 150 kg from 50 000 hectares.
Contract farming is expected to account for 40 000 of the hectarage, with
the remainder being financed from the banking sector and self financing.
Last year 123 million kg of the cash crop were sold at the auction floors.
“Agriculture is projected to grow by 19,3% in 2011, with tobacco output now
estimated to record 200 million kgs from the original projection of 150
kgs,” reads the first quarter treasury bulletin.
On the downside, Zimbabwe’s cereal stocks are expected to diminish raising
fresh fears of grain shortages.
An anticipated rise in cotton prices on the international market and a
statutory instrument introduced last year to outlaw side marketing of the
crop will help boost production as seen by a downward revision.
“As of 31 March 2011, a total of 26,95 million kgs worth US$82 million had
been sold. Over the same period in 2010, a total of 21,6 million kgs was
sold for US$71,2 million. However, the average price of US$3,04 recorded for
the first quarter is lower than the US$3,26 that prevailed in the first
quarter of 2010,” reads the treasury update
“Findings of the survey are estimating a reduced maize output of 1,45
million tonnes from the original projection of 1,5 million tonnes. This is
due to the prolonged dry spell that affected most parts of the country from
January. Similarly, cotton output is now estimated at 220 000 tonnes from
the initial projection of 300 000.”
Tobacco deliveries hit an all time high of 236 million kgs at the start of
the controversial land reform exercise aimed at resettling landless blacks