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Business Reporter
TOBACCO sales have reached $355,6 million from 123 million kilogrammes delivered at the auction floors since the start of the marketing season on March 21.

In the comparable period last year, 113,4 million kg of the golden leaf were sold generating $320,8 million. As of last Friday, the Tobacco Industry and Marketing Board (TIMB) indicated that of the $355,6 million so far paid to the farmers, $301,8 million was paid to the growers who delivered their crop through contract arrangement.

A total of $53,8 million was paid to farmers who delivered their crop through the auction system. At present, the tobacco crop was being sold at an average price of $2,89 a kg compared $2,83 a kg during the same period last year.

TIMB also indicated that so far 1,7 million bales had been laid compared to 1,5 million during the comparable period in 2017. A total of 1,63 million bales were sold while 79 641 were rejected for various reasons ranging from over weight to poor grade. This year, Zimbabwe expects tobacco output to rise by close to six percent to 200 million kg from 189 million kg last year. In the 2017/18 cropping season, total hectorage planted under tobacco decreased to 104 397 hectares from 110 518 ha in the prior year. Tobacco is the country’s second largest foreign currency earner after gold.

Presently, the country exports 98 percent of the golden leaf produced locally with tobacco receipts from the foreign markets expected to reach $1,2 billion this year compared to $904 million in 2017.

Zimbabwe exports its tobacco mostly to China, South Africa, Belgium, United Arab Emirates, Indonesia, France, Hong Kong, Spain, Tanzania, Taiwan, Nigeria, Sudan and Russia among a host of other consumers of flue-cured tobacco from the country.

With an estimated 350 million smokers, China has been spending over $200 million annually on Zimbabwean tobacco, regarded among the best in the world.