Tobacco makes $39.4m in 5 weeks

Published figures from the Auction Holdings Limited Group have shown that tobacco has made a total $39.4 million in the 5 weeks of the market season, representing 4.5% increment compared to the same period in the prior year’s market.

According to the report, the increase has been attributed to the improvement of prices, which averaged $1.53 at end of last week. Meanwhile, the Tobacco Commission (TC) Chief Executive Officer, Kayisi Sadala said the commission is considering the review of preventative measures on auction floors, to avail more farmers on the floors, as they feel that the sale of their tobacco in their absence is unfair.

The farmers took the matter to high court, while protesting against the new Tobacco Act which allows TC to have 75% of the earnings from excess tobacco.

While assuring the farmers of utmost transparency in their absence, Sadala said the commission is in discussion with stakeholders considering the review of restrictions on the floors.

The coronavirus pandemic affected this year’s tobacco market, such that the State President did not open the market as per custom.

On the other hand, the lockdown in Zimbabwe has deprived a tobacco buyer named Voedsel Tobacco Company, from coming to the green gold market in Malawi.

Though the prices and sales registered in the first month are better than last year’s first month, Sadala outlined that there would have been better figures if it was not for the coronavirus pandemic.