27 April 2014

Zimbabwe: Tobacco Prices Remain Low

TOBACCO prices remain subdued 45 days after the official opening of the auctioning season, statistics availed by the Tobacco Industry Marketing Board (TIMB) show.

By Thursday last week, the daily auction average price per kg stood at US$2, 62 down from US$3, 79 recorded last year, representing a 31% decrease.

The figures also show that rejected bales in percentage terms over the same period last year went up from 8, 53% to 11, 80% this year.

High quality tobacco usually fetches good prices for lower primings while top leaves fetch even higher prices.

However, the TIMB noted that prices were expected to continue rising steadily as most growers were now delivering their upper leaf reapings which normally attract higher prices.

The board said the deliveries of primings which dominated the first weeks of sales was now less in proportion compared to leafy tobacco styles.

Reasons for rejection included bad handling as the leaf would be too wet or dry, mouldy or of mixed hands.

TIMB chairperson Monica Chinamasa said the focus of the auctioning process was on quality.

"The price offered depends on the quality of the tobacco. Poor grades fetch lower prices. Price is a function of quality," she said, adding that this also explained the increase in the number of rejected bales.

Ads by Google

Copyright © 2014 Zimbabwe Standard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.