Tobacco sales in the first 10 days of trading at the auction floors have declined sharply by 85%. The Tobacco Industry and Marketing Board (TIMB) statistics show that $2.8 million worth of tobacco had been sold in the first days. Last year $30.2 million worth of tobacco had been sold in the same period.
- Only 1.6 million Kgs were delivered, compared to 10.9 million Kgs in the same period last year.
- Average price of $1,73 per kg compared to last year’s average of $2,77 per kg
A tobacco company official spoke to the NewsDay:
Farmers are not in a hurry to sell. There is also inconsistent policy regarding access to and determination of 50% USD entitlement. Most contractors are yet to start receiving their tobacco. Many were waiting for the circular.
Last week, government-controlled media claimed that sales were now up after an intervention by the finance minister Mthuli Ncube.