Zimbabwe’s tobacco exports are expected to rake in US$660 million this year, a decline from $867 million a year ago.
Government and the Tobacco Industry Marketing Board (TIMB) expect to sell 180 million kilogrammes – a drop from 198,7 million kgs last year – at an average price of US$3,70 per kg.
On the overall, production of the golden leaf is projected to decline 9 percent due to the El Nino weather phenomenon which induced drought and floods in Brazil. Consequently, the prices are likely to fluctuate to the advantage of the farmers.
The new electronic trading platform is also expected to promote an orderly market, which will reduce collusion and chances of buyers conniving on the reduced price of tobacco. TIMB said a total of 57 492 growers have registered for the 2015/16 season.
The 2016 tobacco marketing and selling season, which has been delayed, is likely to open between March 9 and March 16.
(Source of the photo: www.eastobacco.com)