Tobacco sales up 17%

Tobacco sales have increased by 16,59% to 116 885 299 kg as of Tuesday, as farmers deliver more crop to the auction floors, latest statistics from the Tobacco Industry and Marketing Board (TIMB) have shown.

BY BUSINESS REPORTER

During the same period last year, 100 255 986 kg was delivered.

According to the latest statistics from TIMB, tobacco worth $340 191 951 has been sold, up from $292 712 658 recorded during the same period last year.

On Tuesday, the average price was $2,91, down from $2,92 recorded during the same period in 2015.

Farmers have, in the past, complained over low prices, which they say hindered tobacco output.

The contract farming system has so far handled 94 311 494 kg, constituting 80% of the crop leaving auction floors catering for the remainder. This scenario will pile more misery for the three auction floors — TSF, Boka and Premier, as they jostle for crumbs, with the contract system taking the lion’s share of the crop.

Tobacco is one the country’s main foreign currency earners.