By Kingsley Jassi:

Tobacco market demand for subsequent season has grown by 12 p.c as patrons undertaking to purchase over 213 million kilogrammes (kg) of all sorts of tobacco, figures from business regulator, Tobacco Commission, present.

This is up from 190 million kg that was demanded final yr. But farmers failed to satisfy the demand and solely provided 133 million kg.

According to TC spokesperson Telephorus Chigwenembe, the regulator expects an increase in output.

“In their preliminary indications, buying companies have indicated a total of 213 million kilogrammes as the trade demand for the 2024- 2025 tobacco farming season. Buying companies are expected to confirm this demand early 2025,” Chigwenembe mentioned.

However, he mentioned the patrons who will take part within the subsequent shopping for season are but to be licenced, anticipating the train in the direction of the top of the yr.

This follows a 23 p.c improve within the anticipated tobacco volumes as a result of larger growers’ curiosity for this season’s manufacturing.

Statistics from the TC earlier confirmed farmers have indicated to provide 220 million kg of tobacco towards final yr’s 177 licenced volumes and the TC attributes the surge to the outturn of final advertising season which noticed patrons provide larger costs in the marketplace.

However, regardless of licensing manufacturing of the 177 million kgs final season, the farmers failed to satisfy that anticipated output and extra so the 190 million kg as they solely provided 133 million kg.

In the 2024 advertising season, the nation recorded a 40 p.c improve in whole gross sales, producing over $396 million up from $283.76 million in 2023.

With many neighbouring nations are experiencing sharp drops in produced tobacco volumes, the nation’s 40 p.c improve was supported by elevated competitors by patrons resulting in larger costs.

In the season, volumes elevated to 133.1 million kg from 120.5 million kg in 2022, in keeping with an earlier TC report.

The nation’s tobacco farmers have struggled to satisfy demand during the last 4 years, attributing this to low costs that discouraged many growers amid excessive value of manufacturing.