Tobacco sales to date up 1,3%

Published: 14 April 2014

The value of tobacco sold so far has risen 1,3 percent to $215 million from $212 million in the parallel period last year.

According to latest figures from the Tobacco Industry Marketing Board (TIMB), a cumulative total of 67,8 million kilograms of tobacco has been sold, up 19,6 percent from 56,7 million kgs last year.

Contract farmers continue to stake a huge portion of the tobacco sold, contributing 46,5 million kgs worth $153,9 million. On the other hand, the auction has so far contributed 21,3 million kgs worth 61,4 million.

The percentage of bales rejected have been lower in the current period than last year. To date 5,89 percent of bales brought to the auction floors have been rejected, compared to 5,96 percent last year.

The average price for the contract output has also been higher at $3,31 compared to auction's $2,88.

Of the three auction floors, Tobacco Sales Floor (TSF) has been offering the highest average price of $3, followed by Premier Tobacco Floors (PTF) at $2,79 and Boka Tobacco Floors (BTF) at $2,71.

It is notable, however, that the average price of the golden leaf this season has been significantly lower than last year.

This has impacted negatively on the revenue accrued from tobacco sales.

According to Zimbabwe Revenue Authority commissioner-general Gershem Pasi, revenues from tobacco during the first quarter of this year are 31 percent below target.

"A total of $1,9 million was realised from tobacco levy during the quarter against a target of $2,8 million resulting in a negative variance of 31 percent.

"The performance of the revenue head can be attributed to lower current tobbaco prices as compared to 2013 prices, although volumes are higher this year," said Pasi in a recent Q1 revenue performance report.
- BH24

Tags: Tobacco,