Tobacco Sales Go Down

Tobacco Sales To Go Down This Year
Image Credit: Newsday Zimbabwe

Tobacco sales have been going down with drought affecting farming in the 2018-2019 farming season.

Sales decreased by 48%  as at day 26 of the tobacco selling season to a cumulative total of 315, 713 from 607,203 which sold during the same period in 2018 according to information released by the Reserve Bank of Zimbabwe (RBZ).

The cumulative value of tobacco sales registered a 73.4% decrease to US$488,212 million, from US$1,836,003 million realized during the corresponding period in 2018.

The golden leaf’s average price was also down to US1.55/KG compared to US$3.02/kg realised
during the same period in 2018.

Farmers are expected to produce between 220 and 240 million kg of tobacco due to a drought that hit Zimbabwe in the 2018-2019 agricultural season according to Reuters.

Tobacco farmers delivered 252 million kg last year breaking the past records.

The 184,1 million kg tobacco exported produced $892 million in 2018 making the golden leaf the second most producer of foreign currency in the country.

Top five importers of the Zimbabwean flue-cured tobacco last year included South Africa, United Arab Emirates (UAE), Belgium and Indonesia.

Tobacco farmers have been demanding payment in US Dollars from the Government.

The gold leaf producers have also been complaining of low prices in the tobacco market this year.

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