TIMB Adamant Tobacco Sales Will Surpass This Year’s Target

Despite tobacco sales currently at 46 million kgs, the Tobacco Industry and Marketing Board (TIMB) remains convinced that tobacco deliveries could still surpass this year’s target of 240-260 million kilogrammes.

This year’s edition of the tobacco marketing season was mainly delayed by a stand-off between the government and the farmers over the pricing of the golden leaf. Farmers were demanding an increase in the price and they also wanted to be paid part of their proceeds in US$ arguing that the crop is sold in foreign currency. They also argued that they use foreign currency to buy their inputs.

The Herald reports that the highest price at the auction floors this season is US$4,65 per kilogramme while the lowest price has remained at US$0,20 per kilogrammes.

Last year during this period, 72 million kgs had already been sold. This year’s sales are still at least 46 million kilogrammes.

Speaking to the Herald, TIMB chief executive Emmanuel Matibiri said:

Obviously, the season was late in terms of the time of planting of the crop; that is reason number one and then reason number two is that the prevailing prices are discouraging farmers from bring more tobacco for sale.

Farmers were fuming in the past few weeks over the pricing. Some even threatened to withdraw their crop from the market and to shun growing the crop for good. Sales are reported to have slightly improved following the scrapping of the 2% tax on tobacco-related transactions.

Related:

More: The Herald

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