Zimbabwe earns 70 mln dollars from tobacco sales

Zimbabwe has sold some 35.8 million kg of flue-cured tobacco worth 70.2 million U.S. dollars so far at the country's three auction floors.

Figures released by the Tobacco Industry and Marketing Board on Wednesday showed that a total of 17,895,063 kg of tobacco has been sold through the auction floors and 17,924,124 kg through the contract system as of Monday.

This is compared to 39.5 million kg of tobacco worth 58 million U.S. dollars that was sold during the same period last year.

The golden leaf fetched an average price of 1.96 U.S. dollars per kg with sales conducted through the auction averaging 1.90 U.S. dollars per kg and 2.01 U.S. dollars for contract sales.

Meanwhile, the Reserve Bank of Zimbabwe has so far paid growers early delivery bonuses of 2.4 billion Zimbabwean dollars (about 10 million U.S. dollars).

Due to inputs shortages, Zimbabwe this year expects to produce 50 million kg of tobacco, down from last year's 74 million kg.

Despite a decline in production over the years, tobacco still remains one of Zimbabwe's largest foreign exchange earners.

Source: Xinhua