eBusiness Weekly
Kudakwashe Mhundwa
HARARE – Tobacco deliveries at the country’s auction floors continue improve, with 2 million kilogrammes raking in $1, 2 million having been sold since the opening of the marketing season.
Latest statistics provided by the Tobacco Industry and Marketing Board show that at least 1,4 million kg worth $2,6 million have been sold under the contract system, while the three auction floors account for 1 245 640 million kg worth $2 105 044 million.
However, the figures represent a 49 percent dip in the total mass of the golden leaf sold this year compared to the same period last year, when a total of 6 million kg valued at about $2,5 million was sold.
This however comes on the back of delayed starting of the marketing season owing to late rains experienced in different parts of the country and farmers generally adopting a wait-and-see attitude in protest of prices being offered for the crop at the beginning of the season, while others who sold their crop were not happy with the low prices on offer.
Activities at the country’s Tobacco Auction Floors are expected to further improve following the recent scrapping of the 2 percent electronic transfer tax on all activities being done at the country’s tobacco floors.
Tobacco merchants and auction floor operators, through the TIMB, requested the Government to scrap the 2 percent tax, arguing it will seriously hurt their margins
By close of business on Friday, the average price of tobacco was pegged at $4, 50, according to the Tobacco Industry and Marketing Board (TIMB).
The highest price for flue-cured tobacco at the auction floors was pegged at $4, 60 per kilogramme, while the lowest price recorded was 20 cents per kg.
Prices are 9, 8 percent lower compared to the previous season and farmers are not happy, as evidenced by sale disruptions since the start of the season.
Over 18 000 bales have been sold while 21 387 bales were laid at the floors.
At least 3 433 bales were rejected.
Meanwhile, the e-marketing system which faced some challenges at the time of its introduction in 2017 is performing well.
In a telephone interview with Boka Tobacco Floors operations manager Mr Moses Bias he said, “The e-marketing system is performing well, everything is good so far,” said Mr Bias
The e-marketing, the electronic system ensures tobacco buyers receive real time data as the auction process unfolds and will therefore be able to tally bales when they reach the dispatch section of the sales floor.
Processing time for payments will is greatly reduced and ticket tampering will be avoided.
