80% Tobacco sold, k573bn revenue in

 Eighty percent of this year’s 140 million kilogrammes (kg) tobacco production has been sold, earning $327 million (about K572.5 billion) in 11 weeks.

A published AHL Group tobacco market update shows that 112 million kg of the leaf has been sold, raking in $327 million at an average price of $2.92 (about K5 112) per kg.

Reads the report in part: “Cumulatively, 112 million kg of all tobacco types had been sold after 11 weeks of sales in 2024 season, compared to 94.3 million kg of all tobacco types traded during a similar period

 in 2023. This represents an 18.8 percent increase in sales volume this year.

“The seasonal average price of all tobacco types improved by 25.9 percent at $2.92 (about K5112) per kg after 11 weeks of sales this year. During a similar period last year, the average price stood at $2.32 (about K4062) per kg.”

This means that only about 28 million kg remains unsold.

Meanwhile, the Tobacco Commission (TC) says the remaining tobacco could be sold within a month.

Revenues from tobacco improved by 49.7 percent as it was valued at $327 million compared to $218 million (about K381.7 billion) in the

 same period last year.

According to the data, the $2.92 per kg average price slightly increased from the $2.89 (about K5 060) recorded in week 10, a development Tama Farmers Trust president Abiel Kalima Banda said is encouraging.

Kalima Banda said: “The progress of the market has always been impressive thus far for farmers who notice an increase in prices every week, particularly on burley tobacco which ensures they get a significant return of their investment.

“On flue cured tobacco, the prices have not

 been impressive as they mainly revolve around the set minimum price without significantly gaining which is a bit of a concern to us and we are expected to discuss with the buyers.”

Flue cured tobacco price is averaging $2.91(about K5 095) per kg on auction market while for contract it is averaging $3.49 (about K6 110) per kg.

In a separate interview, Tama Farmers Trust chief executive officer Nixon Lita said the season is running smoothly. He, however, said flue cured tobacco incurs high cost of production.

He said: “Comparing the performance of the two, one would notice that burley is getting more cents above the minimum price per grade than flue cured.

“This could be more due to issues of demand from the buyers as our market is more of a burley source, thus attracting more attention from buyers in a year of global scarcity.”

TC spokesperson observed yesterday that this season has seen tobacco of good quality and unprecented prices.

“Even more impressive is the fact that trading has been smooth, without disruptions during this period,” he said.