Tobacco sales up 38%
April 13, 2016 in Business
THE volume of tobacco sold grew by 38,13% to 4,9million kg, as of Friday from the same period last year, latest statistics from the Tobacco Industry and Marketing Board (TIMB) have shown.
BY TARISAI MANDIZHA
TIMB statistics showed that 4,9 million kg valued at $11,4million had sold up from 3,5 million kg valued at $8 million recorded during the same period last year.
Tobacco is being sold for an average price of $2,31 per kg, down from $2,25per kg over the same period last year.
The total auction sales stood at 2,4million kg valued at $4,1 million, while contract sales were 2,5 million kg at $7,2 million.
According to a TIMB report, the number of farmers registered as tobacco growers declined by 21% to 73 592 compared to 93 450 during the same period last year.
Of that, 9 333 were new growers, down from the 17 466 new tobacco farmers registered in 2015.
The country is expected to record a 20% decline in tobacco output this year from 198 million kg produced in 2015.
Tobacco sales are expected to inject fresh liquidity into the economy. This year’s sales started off on a low note after a new system where farmers’ money was deposited into their accounts faced challenges as banks did not have adequate cash.
The situation has since been addressed.