Tobacco sells for the first sixteen days of the current season surpassed those of the comparative 2018 – 2019 season by 540% according to information received by cabinet from the Ministry of Agriculture.
This comes after a delayed onset of the crop’s marketing season, an effect from mitigating the COVID-19 pandemic.
Broadcasting and Information Minister Monica Mutsvangwa said, “To date, a total of 12 605 647 kilogrammes of tobacco have been sold through the auction and contract systems, compared to a total of 2 024 182 kilogrammes sold during the same period during the previous season.”
“The value of the tobacco sold during the current 2019-2020 marketing season amounts to US$28 830 502 at an average price US$2.09, much higher than the US$3 562 220 realised during the comparative 2018-2019 season at an average price of US$1.79.”
The government decentralised tobacco auctions to reduce number of people in the marketing floors as a way of stopping the spread of COVID-19.
Such a procedure could benefit farmers who had to suffer from transport costs increased by longer distances to the centralised auction floors.
“The higher trade volumes and returns are attributable to the decentralization of tobacco auction floors and the early resolution of payment modalities,” Mutsvangwa said commenting on the increased sales.
Decentralisation also resulted in decongestion in auction floors which had been de3strssing for farmers.
Tobacco is one of the major producers of foreign currency creating $977 million in 2019.
Zimbabwe is the fifth largest producer of the golden leaf in the world.
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