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Oliver Kazunga, Senior Business Reporter

TOBACCO sales have reached $158,3 million from 88 million kilogrammes delivered at the auction floors since the start of the marketing season in March.

According to latest figures from the Tobacco Industry and Marketing Board (TIMB), the bulk of the crop so far sold has come through the contract arrangement. Sales through the contract arrangement amounted to 74,4 million kilogrammes valued at $136,3 million while 13,6 million kilogrammes were sold at the auction floors generating $22 million.

TIMB also indicated that bales laid through the contract system were 1 020 797 with 977 221 sold.

This means that 43 576 bales were rejected. Among other reasons, the bales have been rejected due to overweight, underweight and poor moisture content.

Meanwhile, TIMB has remained optimistic that deliveries of the golden leaf could still breach this year’s target of 240-260 million kg despite sales from March to date trailing last season’s numbers by 36 percent for the same period.

The dip in production or deliveries of the golden leaf is a cause for concern for Zimbabwe considering that tobacco, which last year generated nearly US$1 billion, is the country’s second single largest foreign currency earner after gold.

TIMB remains particularly hopeful that deliveries will reach targeted levels and rake in more than last year’s foreign currency earnings amid concerns over production trends in gold, which saw deliveries dipping 10 percent at 6,3 tonnes in the first quarter.

Deliveries to the country’s tobacco floors have negatively been affected by the late onset of the planting season and prevailing low prices. The 2019 tobacco crop was grown under unfavourable weather conditions characterised by late rains and prolonged dry spells especially when the crop was almost ready for reaping.

-@okazunga