Tobacco price firms
By Tabitha Mutenga, Features and Supplements Editor
The highest price so far is US$6,25 per kilogramme, raising prospects of good earnings from the golden leaf.
TOBACCO prices have shown signs of buoyancy during the first 30 days of marketing, with an average daily price of US$2,82 per kilogramme, according to statistics obtained this week.
The highest price was at US$6,25 per kilogramme, raising prospects of good earnings from the golden leaf.
Statistics from the Tobacco Industry and Marketing Board (TIMB) show that the average daily price had increased by 2,2 percent from US$2,76 per kilogramme during the same period last year.
The highest price of US$6,25 per kilogramme was recorded at the contract sales, while the auction sales recorded a high of US$4,99 per kg.
The lowest price recorded was US$0,10 per kg.
A 46 percent change was recorded in terms of the seasonal value of the tobacco sold in the 30 days since the opening of the auction floors.
From the 61,2 million kg sold, the farmers earned US$172,4 million, up from US$118 million sold during the first 30 days of sales last season.
The 43 percent change in total mass sold, according to TIMB, indicates that the contract system had sold 48,8 million kg at an average price US2,91 per kg, while auction sales were at 12,4 million kg at a daily average price of US$2,44 per kg.
Despite the increase in sales and a marketing season with better prices compared to the low prices that prevailed last year, some farmers were failing to access the US$10 000 cash from their respective banks; the central bank raised the daily withdrawal limit for tobacco farmers from US$1 000 to US$10 000.
Zimbabwe Commercial Farmers Union president, Wonder Chabikwa, said it was unfortunate that some banks were failing to comply with the Reserve Bank of Zimbabwe (RBZ) directive that farmers be allowed to withdraw US$10 000 daily.
“Unfortunately, depending on the bank, some farmers are getting US$1 000 while other banks are able to serve the farmers and provide the US$10 000 limit,” Chabikwa said.
With the opening of the auction floors, TIMB and RBZ advised farmers to open bank accounts to allow them easy access to cash.
“All proceeds from the sale of tobacco will be paid through bank accounts. In this regard farmers are required to open accounts with banks of their choice to facilitate the payments. Banks have been engaged and are going to offer bank accounts to tobacco growers at favourable conditions which include waiving of charges for maintaining bank accounts,” said a joint statement from TIMB and RBZ at the start of the marketing season.
Farmers said because of the limited cash withdrawals, they were being forced to spend days camped at the auction floors waiting for cash.
“Farmers need cash to pay for labour considering the fact that others are still grading and curing, Transport operators also need to be paid in cash,” Chabikwa said.
From the 2016 seasonal export sales, Zimbabwe has earned close to US$244 million from 41,7million kg of tobacco exported since the beginning of the year, at an average price of US$5,84 per kg.
China, Indonesia, South Africa, Belgium and Russia are the leading importers of Zimbabwe’s tobacco.
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