Maravi

(HERALD) Tobacco sales set to top revised target

Tobacco sales set to top revised target
By Walter Muchinguri

TOBACCO sales could soon top the revised target of 114 million kilogrammes as deliveries continue to come through albeit at a slower pace. As of Wednesday last week a total of 109,6 million kg worth US$316,1 million had been sold at an average price of US$2,88/kg since the season began in February.

This compares favourably with 58,2 million kg worth US$173,6 million that was sold during the corresponding period last year at an average price of US$2,98/kg.

According to the latest bulletin issued by the Tobacco Industry and Marketing Board weekly sales dropped marginally to 4,5 million kg from 4,6 million sold during the previous week.

The weekly average price also declined to US$2,71/kg from US$2,73/kg during the week under review.

Tobacco sales are following last year’s trend where contractors sold more tobacco accounting for 73 percent of all the tobacco sold while the balance of 27 percent was sold through the auction system.

During the week auction floors recorded one million kg in sales compared to 3,5 million kg sold through contract.

Industry stakeholders believe that if the current momentum of deliveries continues sales would go beyond 114 million kg.

"We have seen deliveries remaining strong although the daily averages have started coming down on the daily averages of 4 000kg to just below 1 000kg.

"At this rate we might see sales reaching the 114 million kg mark by next week," said one of the stakeholders who preferred to remain anonymous.

Officials at the TIMB were mum on these prospects preferring to wait for the outcome of a board meeting expected to be held this week.

The board meeting was expected to review the season as well as look at the closing dates for the season.

Of the 109,6 million kg sold to date, 69,2 million kg valued at US$207,8 million was sold under contract at an average price of US$3/kg.

The balance of 40,3 million kg worth US$108,2 million went under the hammer through the auction system at an average price of US$2,68/kg.

Under the auction system Tobacco Sales Floor accounted for 21,2 million kg valued at US$56,2 million which was sold at an average price of US$2,65/kg.

The balance of 19,1 million worth US$52,02 million was sold at Zitac at an average price of US$2,72 per kg.

The current marketing season had been affected by a number of challenges such as poor prices, shortages of wrapping paper, congestion and corruption by some employees at the auction floors. These have however been dealt with.

At the beginning of last week seasonal sales for burley stood at 306 000 kg compared to 126 000 kg last year.

The seasonal average price stood at US$1,92/kg while that for last year was US$1,98/kg.

Labels: TOBACCO

posted by MrK @ 4:43 AM