×
NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

Tobacco deliveries up 73%

Business
TOBACCO totalling 20,6 million kg and valued at $53,7 million had been sold as of Thursday last week as deliveries increased to the auction floors.

TOBACCO totalling 20,6 million kg and valued at $53,7 million had been sold as of Thursday last week as deliveries increased to the auction floors.

BY TARISAI MANDIZHA

The deliveries were 73% up from the 11,9 million kg recorded last year valued at $28,2 million.

Latest statistics from the Tobacco Industry and Marketing Board (TIMB) showed that tobacco was being sold for an average price of $2,62 per kg, compared to $2,36 per kg over the same period last year.

The total auction sales stood at 4,8 million kg valued at $9,8 million, while contract sales accounted for 15,7 million kg worth $43,8 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, while seasonal exports grew by 10% to 36 842 from 32 520 on the same period last year.

The increase in deliveries to the auction floors comes as farmers, who were coming to the floors for the first time have been facing challenges under the new payment system requiring them to open bank accounts to be paid. TIMB public relations officer Isheunesu Moyo said the regulator was continuously engaging the Reserve Bank of Zimbabwe on the new payment system.

“As of now the payments are being done on time, for farmers who were coming for the second or third time the situation have been rectified. We have a few isolated cases especially the ones coming at the auction floors for the first time,” Moyo said.

He said the banks have a maximum withdrawal of up to $10 000, but if farmers require more they would have to make an application.

He, however, said, TIMB and RBZ would continuously work together to keep track of the system.