Things are looking up for Zimbabwe’s tobacco farmers with earnings from tobacco reaching USD 505 million at auction and contract floors, reports Zimbabwe Situation.

The latest statistics from the Tobacco Industry and Marketing Board (TIMB) show that on 30 June, Day 63 of the current marketing season, tobacco farmers had sold 167 million kilos of the golden leaf making USD 505 million. By comparison, in the previous year, farmers sold 183 million kilos at USD 504 million. The average price for one kilo of leaf is USD 3.02 compared to USD 2.76 in the previous year, a change of 9.6 per cent, reports Zimbabwe Situation. Of the 167 million kilos sold so far, 156 million have been sold via contract floors with the remaining 11 million kilos selling at auction. The highest price achieved has been USD 6.80 per kilo and the lowest USD 0.10.
The government in Zimbabwe had reviewed its foreign currency retention percentage so that this year, 75 per cent is paid in foreign currency up from 60 per cent last year. This is thought to be one of the reasons why the leaf is bringing in higher earnings.