Competition on tobacco market improves prices

By Mabuchi Chunga

As the tobacco market is gradually creeping to an end, the overall sales figures as of week fifteen stood just above K111. 9 billion from 99.97 million Kilograms of all tobacco types sold.

The figure is slightly lower than that of last year during the same period when the market generated K134.5 billion from 123.2 million kilograms of tobacco.

Other developments on the market include better Prices of various tobacco types such as flue cured and dark fired which ultimately contributed to better average prices.

There was stiff competition on the auction Burley market which contributed to a reduction of no sale rejection rates.

Tobacco Commission’s Chief Executive Officer, Kayisi Sadala has attributed this to the volumes of tobacco which are slightly lower than expected.

“We have noted that there is a big improvement on auction in terms of rejection rates which are now going down because there is more competition because the buyers have realized the tobacco is now coming to an end and they are competing heavily,” said Sadala.

This year’s tobacco selling season since it started has seen the auction market face difficulties especially in the form of high rejection rates.

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